February 24, 2014 (Shareholders Foundation) - An investigation on behalf of investors of Lifelock Inc (NYSE:LOCK) shares over potential securities laws violations by Lifelock and certain of its directors and officers in connection certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Lifelock Inc (NYSE:LOCK) concerning whether a series of statements by Lifelock regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Lifelock Inc reported that its annual Total Revenue rose from $162.28 million in 2010 to $369.66 million in 2013 and that its Net Loss of $15.38 million in 2010 turned into a Net Income of $52.45 million in 2013.
Shares of Lifelock Inc (NYSE:LOCK) grew from $7.02 per share in October 2012 to as high $22.717 per share on February 19, 2014.
Then the company announced in a Securities and Exchange Commission filing, that the Federal Trade Commission (FTC) has started an investigation into the company's advertising and marketing practices in connection with Lifelock's alleged misrepresentations in the advertising and marketing of its identity theft protection services. The company had previously entered into a stipulated order with the FTC over its deceptive marketing practices, and the current investigation involves new allegations by a whistleblower.
Shares of Lifelock Inc (NYSE:LOCK) declined to $19.41 per share on February 24, 2014.