LifeLock Inc. will pay $113 million to settle long-running litigation with the Federal Trade Commission over complaints that the Tempe company made deceptive claims about its services.LifeLock, the Tempe-based identity theft protection provider, neither confirms nor denies the allegations as part of the settlement.
"The allegations raised by the FTC are related to advertisements that we no longer run and policies that are no longer in place," according to a LifeLock statement. "The settlement does not require us to change any of our current products or practices. Furthermore, there is no evidence that LifeLock has ever had any of its customers' data stolen, and the FTC did not allege otherwise."
Under the terms of the settlement, LifeLock will place $100 million into the registry of the court that is overseeing the FTC's lawsuit against LifeLock.
About $68 million will be transferred to the court that is overseeing the class action filed against LifeLock, and the money will fully fund the redress contemplated by the class action settlement, a LifeLock statement said.
The remaining $32 million will remain in the registry of the court overseeing the FTC's lawsuit. That money is authorized under the terms of the settlement to fund consumer redress ordered by any state attorneys general, provided that certain conditions are met. If none of this money is used for that purpose, the money would revert back to the FTC, according to LifeLock.
In addition, legal and other administrative fees brings the total amount to $113 million, which LifeLock has already accrued and disclosed in its latest 10-Q form.
"As part of our commitment to continual improvement, in recent years we have made significant investments in our people, process and systems throughout the company to address ever more complex and pervasive identity threats," according to a LifeLock statement. "We are pleased to put this matter behind us and look forward to continuing to provide industry-leading identity protection services to our members."
LifeLock announced in October it had reached agreements with both the FTC and representatives of a national class of consumers.