LifeLock (NYSE:LOCK) has agreed to pay $100 million to settle charges from the Federal Trade Commission (FTC).
The identity theft protection company is shelling out the cash after failing to properly secure its customers’ information and misrepresenting the strength of its security, the Federal Trade Commission announced Thursday.
The settlement is the FTC’s largest order enforcement case ever. A portion of LifeLock’s fee — $68 million — will be paid back to consumers who sued the company in a class action suit over similar complaints about the company’s services.
“This settlement demonstrates the Commission’s commitment to enforcing the orders it has in place against companies, including orders requiring reasonable security for consumer data,” said FTC Chairwoman Edith Ramirez in a statement.
LifeLock’s customers should know that their information was “never at risk,” said David Boies, the chairman of Boies, Schiller & Flexner, who represents LifeLock. “There was never a breach. There has never been any claim that data was breached,” he said.
LOCK stock is down 2.17% Thursday.
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