On Tuesday, September 20, 2016, a federal judge in California granted approval of the $68 million settlement between LifeLock and a class of plaintiffs that alleged it made false statements about the services it provides to consumers that it will alert them of possible identity theft as soon as possible. The judge also approved a fee of and additional $10.2 million for the lawyers. The settlement funds will come from the $100 million settlement LifeLock reached earlier with the Federal Trade Commission (FTC) last year [view related post]. The FTC alleged that LifeLock had failed to establish a comprehensive information security program and “falsely advertising that it protected consumers’ sensitive data with the same high-level safeguards as financial institutions.”
The judge rejected several of the plaintiffs’ claims that the settlement amount was too low and that the consumers should be reimbursed for the actual amounts paid to LifeLock. One named plaintiff immediately appealed the Order approving the settlement saying the settlement funds should not come out of the FTC settlement and that the attorneys’ fees were too high, since the FTC had done most of the work. The attorneys’ fees granted by the judge will not be paid out of the settlement with the FTC.
The settlement was reached through mediation, and the consumers in the class will each get $20.