Tuesday, August 23, 2011
The claim against LegalZoom filed in Missouri federal district court alleging that the online legal document provider is engaged in the unauthorized practice of law has been settled. Final terms are still being negotiated. (We reported last week that the court just recently denied LegalZoom's motion for summary judgment arguing that its service does not constitute the UPL as a matter of law).
Plaintiffs and LegalZoom.com, Inc. have reached an agreement in principle to settle the class action lawsuit captioned Janson v. LegalZoom.com, Inc., in the United States District Court in the State of Missouri. The Plaintiffs alleged claims related to LegalZoom's offering of legal self-help products over the Internet.
Under the terms of the proposed settlement, LegalZoom can continue to offer its services to Missouri residents with certain business modifications. The proposed settlement contains no admission or finding of wrongdoing by LegalZoom.
The settlement of the lawsuit avoids a prolonged and costly trial in a case where the plaintiffs never claimed that the documents they purchased from LegalZoom were defective in any way, stated attorneys for LegalZoom. While LegalZoom continues to dispute the basis of the allegations in this case, it believes it is in the best interests of the Company and its customers to move forward with a settlement.
Terms of the proposed settlement are currently being negotiated and will be released after they have been fully approved by all sides.
Hat tip to the online ABA Journal.