Why Is LifeLock Paying $100 Million to Customers?


Identity-theft protection company LifeLock will spend $100 million for the settlement of a lawsuit that held the company responsible for misleading customers.

On Thursday, the Federal Trade Commission (FTC) approved a comprehensive settlement agreement, which was announced in October.

LifeLock is a provider of proactive identity theft protection services for consumers and consumer risk management services for enterprises.

The company was accused of falsely promotion of services, not providing alerts, as well as not protecting customers’ personal information.

In a statement, LifeLock said that it neither confirms nor denies the allegations of the parties.

Under terms of the agreement, $68 million will go to customers who filed a class-action lawsuit, while the remaining $32 million will be used to fund consumer redress ordered by any state attorneys general.

The FTC will get money that will be left unspent.

The total amount, according to the company, will $113 million, including legal and other administrative fees.

“The allegations raised by the FTC are related to advertisements that we no longer run and policies that are no longer in place. 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,” LifeLock said in a statement.