NEW YORK (TheStreet) -- LifeLock (LOCK) stock is soaring 42.62% to $13.82 on heavy trading volume on Thursday morning after the company announced it agreed to a settlement with the Federal Trade Commission and representatives of a class action lawsuit related to false advertising claims.
The proposed settlement will not require the company to change its products or its advertising practices.
The identity theft provider also set aside an additional $96 million to its reserves to settle the claims, bringing its total to $116 million.
Yesterday after the market close, the company also announced its 2015 third quarter financial results which were better than expected.
LifeLock reported earnings of 28 cents per share, beating estimates by 3 cents, and revenue of $151.95 million, surpassing estimates of $147.36 million.
Additionally, the company increased its 2015 earnings guidance to 61 cents to 63 cents per share from 58 cents to 61 cents per share.
Revenue guidance for the year was raised to $584 million to $586 million from the previous outlook of $577 million to $582 million.
So far today, 8.32 million shares of LifeLock have been exchanged, compared with its average daily volume of 1.66 million shares.
Separately, TheStreet Ratings team rates LIFELOCK INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate LIFELOCK INC (LOCK) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.
You can view the full analysis from the report here: LOCK