The Elder Firm, LLC - Nathan J. Forck, Attorney

Tuesday, September 6, 2011

Settlement Reached in Missouri Lawsuit Against LegalZoom

From www.elderlawanswers.com

A preliminary settlement has been reached in a Missouri class action lawsuit against the legal document preparation service LegalZoom.

The lawsuit was filed by several LegalZoom customers in Missouri who alleged the company was engaging in the unauthorized practice of law. LegalZoom is one of the largest legal document preparation services on the Web, providing consumers a variety of legal documents, including estate planning instruments.

At the beginning of August, a federal court denied LegalZoom summary judgment in the lawsuit (Janson v. LegalZoom.com, Inc., U.S. Dist. Ct., W.D. Mo., No. 2:10-CV-04018-NKL, Aug. 2, 2011). The parties have agreed to settle in principal, but the final details of the settlement are still being worked out. The settlement provides that LegalZoom will make certain business modifications in order to keep operating in Missouri. There are no details on the business modifications LegalZoom will make, but in a settlement with the Washington Attorney General's office reached last year, the company agreed to not to compare its costs to attorneys' fees unless the company clearly discloses that its service isn’t a substitute for a law firm. It also agreed not to provide individualized legal advice about self-help forms.

According to plaintiff's attorneys, the settlement will also include compensation for LegalZoom customers. The settlement contains no admission of wrongdoing. According to an article in the Kansas City Star, the plaintiffs are supposed to file a motion for preliminary approval of the settlement by September 23.
In June, LegalZoom also reached a settlement in principal with plaintiffs in a California lawsuit. For more information on the California lawsuit, click here

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