Posted Aug 23, 2011 12:32 pm CDT
LegalZoom has reached a proposed settlement in a Missouri class action that claimed the legal document company was not licensed to offer legal services in the state.
The agreement in principle allows LegalZoom to continue operating in Missouri, as long as it makes certain business modifications, according to a press release. The terms are still being negotiated and won’t be released until all sides give full approval to the agreement.
The suit had accused LegalZoom of unlawfully charging consumers for the preparation of legal documents. A trial in the case had been scheduled to begin on Monday in Missouri federal court, report the Kansas City Star and the Associated Press.
An attorney for the plaintiffs told AP that the proposed agreement also includes compensation for Missouri consumers who used LegalZoom.
LegalZoom reached a settlement with the attorney general’s office in Washington state last year that bars the company from providing individualized advice about the preparation of self-help forms. The deal also barred the company from comparing its document costs to attorney fees unless it discloses that its service isn’t a substitute for a law firm.
Prior coverage of LegalZoom:
ABAJournal.com: “Suit Claims LegalZoom’s Document Prep Is Unauthorized Practice”
ABAJournal.com: “Alabama Bar Group Files Suit to Ban LegalZoom”
ABAJournal.com: “Wash. AG’s Settlement with LegalZoom Bars Fee Comparisons Absent Disclosure”