Please ensure Javascript is enabled for purposes of website accessibility

Why Lifelock Inc Shares Dropped

By Jeremy Bowman – Feb 24, 2014 at 5:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of LifeLock Inc (LOCK) were getting broken today, falling as much as 11%, and finishing down 7% after a pending Federal Trade Commission investigation was revealed over the weekend.

So what: The identity-theft protection service said in its 10-K filing that it had met with the FTC to discuss whistle-blower claims regarding its marketing practices. In a statement, the company said, "We believe we are in an environment in which there is increased regulatory scrutiny," and that it believes "there has been a recent increase in whistleblower claims made to regulatory agencies."

Now what: A regulatory investigation is never good news, but there's really not enough information in LifeLock's statement to gauge the seriousness of the whistle-blower claims. In 2010, LifeLock paid $12 million to settle charges from the FTC, so it is no stranger to regulatory action. To keep tabs on this developing story, you can add LifeLock to your Watchlist by clicking right here.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends LifeLock. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

LifeLock, Inc. Stock Quote
LifeLock, Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.