Securities Class Action Filed Against LifeLock

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A proposed class action has been filed in Arizona against LifeLock, Inc. and its board of directors in the wake of the identity theft protection company’s acquisition by Symantec Corporation and L1116 Merger Sub, Inc. Filed on behalf of all LifeLock stockholders, the lawsuit contends the merger agreement into which the company entered unlawfully ensured that no other entity could submit a competing acquisition proposal due to a “no solicitation” provision. “By agreeing to all of the deal protection services, the individual defendants have locked up the proposed transaction and have precluded other bidders from making successful competing offers for the company,” the lawsuit contends.

The case further claims that the proxy statement submitted by LifeLock to the Securities and Exchange Commission omitted material information regarding the company’s “projected financial information and the financial analyses performed by the company’s financial advisor, Goldman, Sachs & Co., in support of its so-called fairness opinion.”