LegalZoom settles class action…

As I had previously discussed, LegalZoom (U.S. legal forms company) was sued in a Class Action in Missouri. The 15,000 or so plaintiffs (Missouri residents who had used LegalZoom’s services) claimed that LegalZoom had been involved in the unauthorized practice of law in that State. Well, the matter was heading for trial this month. But, just a few days ago, both parties appeared before a federal judge in the U.S. Western District of Missouri. They indicated that a settlement had been tentatively worked out. While the details of the deal are still unknown, here is what is known:

  • LegalZoom admits no liability as part of entering into the settlement;
  • There would be some form of compensation to LegalZoom’s customers in the State of Missouri; and
  • LegalZoom will continue offering services to Missouri residents with certain changes.

It will be interesting to note how lawyers, law-makers, and legal service providers (such as LegalZoom and RocketLawyer) will be affected by the settlement.

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