Few companies in this country have experienced a bubble burst like LifeLock.
You know the company with the CEO who dared black-hat hackers and random folks standing at a bus stop to hack his identity? Well, they did and wouldn’t you know it… his identity got hacked. At least 10 times!
People knew then Todd Davis and his company was full of more crap than a Christmas turkey. Still, he persisted in parading his social security card out there seeing who might be interested in what he had in his bank accounts. And for anywhere ranging from $100 to $300 per year, you can experience the same kind of inane braggadocio that Davis enjoyed.
And then he settled with the Federal Trade Commission (FTC) for $11 million over several false claims in ads. That was 2010.
Evidently, Davis thought the FTC forgot his address (and his ubiquitous social security number) so he continued with business-as-usual. Guess who came knocking again? This time (and this week), Davis got spanked considerably harder — for $100 million, according to The New York Times.
The F.T.C. said Thursday that the size of the fine, one of the largest from the agency, reflected the egregiousness of LifeLock’s actions.
“The fact that consumers paid LifeLock for help in protecting their sensitive personal information makes the charges in this case particularly troubling,” Edith Ramirez, the F.T.C. chairwoman, said in a statement.
LifeLock said in the court filing that it neither admitted nor denied the FTC’s allegations.
“The allegations raised by the FTC are related to advertisements that we no longer run and policies that are no longer in place,” the company said. “There is no evidence that LifeLock has ever had any of its customers’ data stolen, and the FTC did not allege otherwise.”
The company’s stock is down 2.3 percent at $13.96 in midday trade. So, how’d that lack of evidence work out?