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N.J. Class Action Lawsuit Filed Against LifeLock
CNBC ^ | 31 Mar 2008 | SOURCE Marks & Klein, LLP

Posted on 04/30/2008 8:58:56 AM PDT by APRPEH

N.J. Class Action Lawsuit Filed Against LifeLock Alleging Deceptive Marketing Regarding Limited Level of Protection Against Identity Theft

NEW BRUNSWICK, N.J., March 31, 2008 /PRNewswire via COMTEX/ -- A class action lawsuit was filed on Friday, March 28 against LifeLock, Inc. and its CEO Richard "Todd" Davis by Dr. Warren Pasternack and his wife, Susan Pasternack, on behalf of themselves as well as all other New Jersey LifeLock subscribers. The Pasternacks allege that LifeLock misled them about the limited level of identity protection the company provides, and failed to warn them about the potential adverse impact those services could have on their credit profiles.

The plaintiffs, who reside in Middlesex County, filed suit in the New Jersey Superior Court in New Brunswick, claiming that they were the victims of Consumer Fraud by virtue of LifeLock's deceptive advertisements. The suit seeks to recover the money subscribers have paid to LifeLock and prohibit the company from continuing to promote its services through its marketing campaign.

LifeLock, which is headquartered in Tempe, Ariz., charges subscribers $10 per month for the services it provides as "the industry leader in the rapidly growing field of Identity Theft Protection." In fact, in its ubiquitous marketing campaign, Davis broadcasts his own social security number on television and radio stations across the country as testimony to his confidence in the services LifeLock claims to provide.

According to the Complaint, however, LifeLock's popular advertisements lull its subscribers into a false sense of security by misrepresenting the level the protection its services provide. To illustrate this point, the Complaint states that as a result of LifeLock's popular advertisements, CEO Davis's identity "was stolen while he was a customer and is, upon information and belief, presently being misappropriated by at least twenty identity thieves." David Paris of Marks & Klein, LLP, Red Bank, N.J., the attorney for the Pasternacks and the proposed class, maintains that LifeLock dramatically overstates the level of protection provided by its primary service -- the placement and constant renewal of fraud alerts on its subscribers' credit profiles.

"While fraud alerts may be effective in limited instances, they certainly cannot provide the comprehensive identity protection that LifeLock deceptively advertises," said Paris. "For instance, fraud alerts cannot stop the use of existing account numbers, and contrary to LifeLock's advertisements, lenders are certainly not required to contact the subscriber before extending credit to a potential identity thief." According to the Complaint, LifeLock also misleads subscribers by advertising its $1 million service guarantee. "Potential LifeLock subscribers are enticed by the 'safety net' of what appears to be a one-million dollar insurance policy against any losses sustained as a result of identity theft," said Paris. "In actuality, once you get beyond the limitations and disclaimers, you find that the guarantee is limited to fixing failures in LifeLock's services and paying third-parties to attempt to restore subscriber losses." Paris added that Marks & Klein plans to file similar actions in New York, Florida, and California for violations of those states' Consumer Protection Laws. LifeLock, which was founded in 2005, presently has approximately 900,000 subscribers across the United States.

SOURCE Marks & Klein, LLP URL: http://www.markslaw.net www.prnewswire.com Copyright (C) 2008 PR Newswire. All rights reserved -0- KEYWORD: New Jersey INDUSTRY KEYWORD: CPR


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; US: New Jersey
KEYWORDS: fraud; lawsuit; lifelock; todddavis
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yet another hit for Lifelock. This suit was expected but others are certainly coming. Maybe this is all about failure to read the fine print but then again it all depends on what the company really claims it can do.

if you are going to pay for identity protection you are wasting your money unless you have a pro ready to work for you in your time of need.

1 posted on 04/30/2008 8:58:56 AM PDT by APRPEH
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To: APRPEH

The TV commercial says they’ll pay you up to $1 million for any losses. But the company doesn’t really do that. So the TV commercial is fraud.


2 posted on 04/30/2008 9:01:41 AM PDT by grundle
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To: APRPEH; Jersey Republican Biker Chick; Sam's Army; Rutles4Ever

How dumb do you have to be to sign up with them? I mean, that Todd Davis guy is giving out HIS OWN Social Security number on the radio! How careful do you think he’s gonna be with yours?


3 posted on 04/30/2008 9:03:15 AM PDT by End Times Sentinel (In Memory of my Dear Friend Henry Lee II)
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To: APRPEH

LL has been great for me. Before closing on a refi last month, LL called and made sure it was me. That’s all I need to know.


4 posted on 04/30/2008 9:03:28 AM PDT by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: APRPEH

I think that identify theft is over-hyped. Sure, it happens, but it is not the epidemic that the media and these companies claim.


5 posted on 04/30/2008 9:03:33 AM PDT by MeanGreen2008
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To: APRPEH

This is interesting..... I keep thinking that I’ll sign up because Rush promotes it on his website, but now I’m not so sure.....


6 posted on 04/30/2008 9:03:44 AM PDT by ForbesFan
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To: APRPEH

“Maybe this is all about failure to read the fine print but then again it all depends on what the company really claims it can do.”

Yup, we’ll have to wait and see. In the end, however, it will be the lawyers who win $$$$$


7 posted on 04/30/2008 9:03:53 AM PDT by Slapshot68
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To: grundle

Doesn’t a judge first have to certify a suit as representative of a class of litigants ?


8 posted on 04/30/2008 9:03:55 AM PDT by Eric in the Ozarks
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To: grundle
The TV commercial says they’ll pay you up to $1 million for any losses. But the company doesn’t really do that.

Says who?

9 posted on 04/30/2008 9:04:43 AM PDT by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: APRPEH

Rush is deeply saddened.


10 posted on 04/30/2008 9:06:11 AM PDT by BGHater ("If any question why we died/ Tell them, because our fathers lied")
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To: Owl_Eagle
I was actually impressed that he did that in the ads. Now I am less impressed.

as a result of LifeLock's popular advertisements, CEO Davis's identity "was stolen while he was a customer and is, upon information and belief, presently being misappropriated by at least twenty identity thieves."

11 posted on 04/30/2008 9:06:59 AM PDT by DManA
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To: APRPEH

New Jersey’s one of the states where you can simply freeze your credit for free. It’s a $5 fee to thaw your credit if you need to.

A lot cheaper than $10/mo.


12 posted on 04/30/2008 9:07:09 AM PDT by Slapshot68
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To: Slapshot68

Georgia just passed a $3 freeze bill.

Does anyone out there know the status of the Governor’s signature or when we can start using it here in Georgia?

I can’t wait.


13 posted on 04/30/2008 9:09:15 AM PDT by dr.zaeus
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To: MeanGreen2008

I equate IDTheft to airplane crashes. Rare but the result is devastating on a large scale.


14 posted on 04/30/2008 9:09:54 AM PDT by Cletus.D.Yokel
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To: BGHater

Maybe now conservative talkers will ditch these annoying commercials. Next maybe they will all take a look at Direct Buy. They damage their credibility shilling for bogus products like these. Not to mention: Cortislim, Body Solutions, and worst of all The Three Step Plan ($150 a gallon fruit juice).


15 posted on 04/30/2008 9:10:36 AM PDT by Minn (Here is a realistic picture of the prophet: ----> ([: {()
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To: grundle
The TV commercial says they’ll pay you up to $1 million for any losses. But the company doesn’t really do that. So the TV commercial is fraud.

The commercial used to say that. It has not said that in a while.

Back when it was marketed as an insurance policy, it might have been a pretty attractive deal. But now it just has the smell of a scam.

16 posted on 04/30/2008 9:12:35 AM PDT by gridlock (Proud McCain Supporter since February 8, 2008.)
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To: Slapshot68
New Jersey’s one of the states where you can simply freeze your credit for free. It’s a $5 fee to thaw your credit if you need to.

I have to look into this.

17 posted on 04/30/2008 9:13:45 AM PDT by gridlock (Proud McCain Supporter since February 8, 2008.)
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To: Minn
One of the few, who does not take advertisers is Clark Howard, because if one was bogus it would hurt is reputation and credibility.

He has been railing against LifeLock forever.

18 posted on 04/30/2008 9:14:20 AM PDT by BGHater ("If any question why we died/ Tell them, because our fathers lied")
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To: APRPEH

I believe you can set up your credit profiles to require all inquiries to contact you at an authorized number.

A few weeks ago, I went to their web page to try to see what they did. It wasn’t worth $10 a month, but for those who don’t know how to have the credit bureaus put the restrictions on their accounts, it would be helpful.


19 posted on 04/30/2008 9:14:40 AM PDT by ConservativeMind
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To: grundle

According to Consumer Protection, something promised in large print cannot be taken away in smaller print. I would think that a tv ad’s promises trump any small print.


20 posted on 04/30/2008 9:15:01 AM PDT by sportutegrl
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