GLENDALE, Calif., June 30, 2011 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. has reached an agreement in principle to settle the pending class action, Webster v. LegalZoom.com, Inc. The settlement will also resolve claims in a related class action, Whiting v. LegalZoom.com, Inc. The Plaintiffs alleged claims related to LegalZoom's offering of legal self-help products over the Internet. Neither case alleged that LegalZoom's documents were defective in any manner.
Plaintiffs have now requested that the Court certify a class, for settlement purposes only, consisting of all LegalZoom customers over the past six years. Under the terms of the proposed global settlement, which must be approved by California Superior Court Judge William Highberger, LegalZoom will provide two months of membership in LegalZoom's Legal Advantage Plus or Business Advantage Pro plan, depending on the product each customer purchased. LegalZoom's Legal Advantage plans are monthly membership plans which provide members with access to attorney consultations, access to LegalZoom's extensive legal form database, and other benefits.
"Our intent is to achieve a resolution of these lawsuits and avoid a prolonged and costly litigation process. While we continue to dispute the basis of the allegations in the cases, and are confident we are not engaged in any of the activities set forth in the complaints, we believe it is in the best interests of the Company and our customers to move forward with the proposed settlements," said Kenneth Friedman, Vice President of Legal and Government Affairs at LegalZoom.
"Our customers will have access to Legal Advantage plans, enabling them to speak to a locally-licensed attorney to supplement the self-help legal forms available on LegalZoom.com," said John Suh, CEO of LegalZoom. "A final settlement will allow us to focus on what we do best; provide Americans greater access to high quality, reasonably priced legal solutions that leverage modern technology."
In Webster, plaintiffs' lawyers alleged that LegalZoom's website included misleading statements that LegalZoom would provide legal advice to its customers, which lead to the unjustified belief that LegalZoom was engaged in the unauthorized practice of law. In Whiting, plaintiffs' lawyers alleged technical non-compliance with an outdated statute that was never intended to apply to the Internet age.
"The proposed settlement contains no admission or finding of wrongdoing by the Company. LegalZoom believes that all Americans have the right to affordable and convenient legal protection. We look forward to continuing our important work," added Friedman.
About LegalZoom.com
LegalZoom is the nation's leading provider of online legal document services to small businesses and families. Since our founding in 2001, we've helped more than 1 million customers create a will or living trust, form a corporation or LLC, apply for a patent or trademark, and more. The company was founded by top talents in law and technology, including famed attorney Robert Shapiro. LegalZoom is not a law firm. We provide self-help services and a legal plan where customers have access to attorneys at a fixed monthly fee. Headquartered in Glendale, California, with offices in Austin, Texas, the company has over 500 employees. For more information, visit www.legalzoom.com.