LifeLock CEO Todd Davis has become famous for his commercials where he offers his social security number to demonstrate how confident he is in his company's identity theft protection program.
However, recently, his identity protection program has come under attack -- not from identity thieves, but from trial lawyers. Consumers in four states are suing Davis and his company for false advertising and deceptive trade practices. At the heart of the matter is LifeLock's $1 million service guarantee to restore the identity and pay all direct costs and expenses resulting from the identity theft.
"My identity has been completely protected by LifeLock and I am as confident as ever about the LifeLock service," Davis said in a statement. "It is shocking that completely untrue statements about our company, the protection we provide and my personal identity are being repeated from a trial lawyer looking to create a case that clearly is not in the best interest of consumers."
Davis Lashes Out
Recent claims have suggested that Davis' social security number has been used at least 20 times to obtain drivers licenses and other credit. Davis explained that these claims are completely untrue and reflect total inexperience and lack of understanding of how credit files and identities work.
"While there have been more than 100 attempts to use my identity information, none of these recorded in the credit files resulted in any loss for me. However, a check cashing company failed to properly follow procedures and verify the identity of a thief in 2007, resulting in a person being able to cash a check for $500," Davis argued. "The LifeLock guarantee served me as it serves all LifeLock members, what identity theft LifeLock can't prevent, it will fix at LifeLock's expense up to 1 million dollars."
Davis pointed out that there have been only four individuals out of over 1 million LifeLock members who have alleged they are dissatisfied with LifeLock as part of class action lawsuits. However, he claimed, none of these individuals appear dissatisfied enough to cancel their service or even ask for a refund.
The Bear or the Bearskin?
"We vigorously contest all the spurious allegations made by these trial lawyers. We have already asked two federal judges to dismiss claims in the cases before them, and plan to ask every judge to dismiss the claims in all other cases that may be filed. In the some of the recent challenges to LifeLock, you have to ask yourself, what is the motivation behind the lawsuits?" Davis asked.
The motivation, answered Jerry Marks, a partner in the law firm of Marks & Klein, is consumer protection. Marks & Klein has filed class action suits in New Jersey, West Virginia and Maryland and plans to file a new suit in Florida, with other states following in the coming weeks.
"Let's say someone does dumpster diving and as a result gets my social security number and name off some documents and I sustain a $200,000 loss. From LifeLock's advertising you would think I have nothing to worry about," Marks said. "The first misconception is LifeLock is not insurance. This is a deceptive business practice. Consumers think they are getting the entire bear and we maintain all you are winding up with is the bearskin."