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LifeLock's debut not a lock, stock drops 7%

October 3, 2012: 11:06 AM ET

LifeLock's shares tumbled during its debut on the NYSE.

LifeLock hasn't found much security in the public markets yet.

Shares of the maker of identity theft protection services, which began trading Wednesday under the ticker "LOCK" (LOCK), fell nearly 7% in their New York Stock Exchange (NYX) debut.

LifeLock was poised for an inauspicious kickoff. The company's underwriters priced the 15.7 million shares sold in the IPO at $9 -- below the expected range of $9.50 to $11.50. The IPO generated $141.3 million for the company.

LifeLock is a company with a colorful, or some might say tarnished, history. The company's CEO, Todd Davis, infamously offered up his social security number by displaying it on the side of a truck in television advertisements. Following the stunt, Davis reportedly became a victim of identity theft.

In March 2010, LifeLock paid the Federal Trade Commission $12 million to settle charges that the company deceived consumers about the efficacy of its identity theft protection services.

Related: IRS pay billions in refunds to identity thieves

LifeLock was also one of the few companies to continue advertising on Rush Limbaugh's show after  the talk show host called a Georgetown University student a slut for her views on birth control in early March 2012. After Limbaugh's comments, LifeLock's chief marketing officer issued a statement saying that the company did not agree with Limbaugh's statements but accepted his apology. Most other advertisers pulled out at that time.

It's a busy week for IPOs with eight companies set to tap the public markets, including restaurant and arcade company Dave & Buster's Entertainment.

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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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