LifeLock Signs Settlement Offer With FTC According To 8-K

In 2010, LifeLock, Inc. ("LifeLock") entered into a consent decree with the Federal Trade Commission ("FTC"). On July 21 2015, the FTC initiated a contempt action alleging that LifeLock had violated the consent decree. Federal Trade Commission v. LifeLock, Inc., et al., No. CV-10-00530-PHX-JJT (D. Ariz.). On January 19, 2015 a putative class action, Napoleon Ebarle et al. v. LifeLock, Inc., No. 3:15-cv-258 (N.D. Cal.), was filed against LifeLock on behalf of all LifeLock members from September 1, 2010 to the present alleging that LifeLock misrepresented its services in various ways and failed to deliver certain promised services (the "Ebarle Class Action"). On October 28, 2015, LifeLock signed an offer of settlement that it negotiated with FTC staff to present to the FTC to resolve the contempt allegations. The offer remains subject to the FTC's approval and entry by the court. On November 3, 2015, LifeLock signed an agreement to settle the Ebarle Class Action and release all of the class's related claims. The Ebarle Class Action settlement remains subject to court approval. LifeLock has accrued $113 million in reserves, which it anticipates will settle both matters.