This patch seems to fix the problem.

** Patch added: "07_CVE-2011-4105.patch"
   
https://bugs.launchpad.net/ubuntu/+source/lightdm/+bug/883865/+attachment/2609002/+files/07_CVE-2011-4105.patch

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https://bugs.launchpad.net/bugs/883865

Title:
  lightdm doesn't drop privileges when reading ~/.dmrc

Status in “lightdm” package in Ubuntu:
  Fix Released
Status in “lightdm” source package in Oneiric:
  Fix Released
Status in “lightdm” source package in Precise:
  Fix Released

Bug description:
  LightDM doesn't drop privileges when reading the ~/.dmrc file. This
  allows a local user to read configuration files he would normally not
  have read permissions for, for example, mysql configuration files that
  contain passwords.

  How to reproduce:
  1- Create a /etc/app.conf file owned by root with 600 permissions, containing 
the following:
  [App]
  password=xyz
  2- Log in as a regular user
  3- rm ~/.dmrc
  4- ln -s /etc/app.conf ~/.dmrc
  5- Log out, log back in
  6- look at ~/.dmrc

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