It's just a remote access client. Stock Android comes with one, which you can still use here, LG has provided a more advanced one that has better compatibility with more advanced forms of IPSec encryption, haven't really played with it to see what else it does.
I highly doubt that Verizon has instructed LG to intentionally compromise the security of their VPN client, the legal ramifications alone would make this a very foolish decision, even for Big Red. The security of the traffic sent over the tunnel depends on what type of encryption was used, and we can't currently be positive that there is a type of encryption out there the NSA can't crack, they don't need Verizon's help to do so.
What type of VPN are you trying to connect to? If this is corporate or educational the security of the traffic isn't your responsibility anyway.
The truth is out there.