LifeLock Settles Lawsuits With FTC, Stock Up 38%

(RTTNews) - LifeLock Inc. (LOCK) Wednesday said it reached an agreement to settle litigations with the Federal Trade Commission and consumers who sued the company relating to its past marketing representations and information security programs.

The Company noted that the agreements are not yet final, as the FTC staff's recommendation to approve the settlement must still be approved by the Commission itself and a federal judge, and the class action settlement will require review and approval by the court.

LifeLock has accrued an additional $96 million in reserves, bringing its total to $116 million.

The proposed FTC settlement does not require us to change our current products, services, or business and information security practices, including in particular, our current marketing and advertising practices, the company said.

The company also reported third-quarter loss of $65.1 million or $0.68 per share, compared to last year's profit of $5.5 million or $0.06 per share. Adjusted earnings rose to $0.28 per share from $0.16 per share last year. Revenues rose to $144.6 million from $116.1 million last year.

Analysts polled by Thomson Reuters estimated earnings of $0.25 per share on revenues of $147.4 million.

Looking forward to the fourth quarter, the company expecrs revenues of $153 million to $155 million and adjusted earnings of $0.28 to $0.30 per share.

For the full year 2015, the company expects revenues of $584 million to $586 million and adjusted earnings of $0.61 to $0.63 per share.