SAN DIEGO -- The attorney generals of California and 34 other states joined the Federal Trade Commission Tuesday in announcing a settlement, filed in San Diego, that prevents LifeLock Inc. from "misrepresenting and overstating" the identity-theft protection services it offers to consumers.

LifeLock also agreed to pay $11 million in restitution to its subscribers and $1 million to cover the costs of the states' investigation. According to California Attorney General Jerry Brown's office

The complaint and judgment against the Tempe, Ariz.-based company was filed in San Diego Superior Court.

"Lifelock sold Californians a false sense of security against identity theft with advertisements that were chock-full of inflated claims and promises," Brown said. "Today's settlement prevents the company from misrepresenting and overstating its services and reimburses LifeLock subscribers who were misled."

Last year, Brown joined the FTC and numerous other attorneys general to jointly investigate LifeLock's business practices. The probe followed a number of allegedly misleading advertisements from the company that included a testimonial from the CEO in which he gave out his social security number to demonstrate his confidence in LifeLock's services.

Brown's complaint contended that LifeLock falsely led customers to believe that they would be protected against all forms of identity theft, reimbursed directly for losses tied to identity theft and notified prior to any new credit being issued under their name. None of those claims were accurate, according to Brown.

LifeLock advertisements also implied that any fraudulently obtained personal information would be removed from criminal Web sites, when in fact the company only notified consumers when their information had been compromised, according to the complaint.

According to Brown's office, the settlement prevents LifeLock from misrepresenting that its services: -- provide complete protection against all forms of identity theft; -- constantly monitor activity on each of its customers' consumer reports; -- prevent unauthorized changes to customers' address information; and -- ensure that a customer always receives a phone call from a potential creditor before a new credit account is opened in the customer's name.

Brown's office and the FTC will jointly send letters over the next two weeks to customers in California that subscribed to LifeLock between April 1, 2005, and March 30, 2009, notifying them of the agreement and how they can opt in to the settlement.

LifeLock typically charged consumers $10 a month to subscribe to its identity theft protection services, Brown said.