LegalZoom Settles with Missouri

August 23rd, 2011

Rather than continuing to fight the class action settlement, LegalZoom and the Plaintiffs in Missouri have settled. According to the terms of the 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.”

This follows a settlement LegalZoom reached with the Washington AG last year:

A settlement bars the company from comparing its document costs to attorney fees unless it discloses that its service isn’t a substitute for a law firm, a press release says.

In an “assurance of discontinuance,” LegalZoom also promises to refrain from:

• Failing to offer estate-planning forms that conform to Washington law.

• Engaging in the unauthorized practice of law by providing individualized legal advice about a self-help form.

• Selling consumer information to third parties, unless they are given a chance to opt in.

The fact that this case settled means the Plaintiffs didn’t think they had a slam dunk. Progress, I suppose.

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