LegalZoom Class Action Lawsuit Settlement

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LegalZoom has reached a class action lawsuit settlement that will resolve claims that its website and advertising contain statements that are misleading and over-promise what LegalZoom will deliver to its customers, including the unauthorized practice of law. As a result, anyone who purchased a legal document or legal document assistant service from LegalZoom from 2005 through 2011 may be able to receive several benefits from the LegalZoom class action settlement.

The LegalZoom settlement will resolve a 2010 class action lawsuit, entitled Webster v. LegalZoom.com, Inc., that alleges LegalZoom not only misled consumers about the services it could provide, but also practiced law without authorization. It also claims that LegalZoom failed to comply with the California Legal Document Assistant Act, California’s Consumers Legal Remedies Act, the California Unfair Competition Law, and other state laws.

LegalZoom denies any wrongdoing but has agreed to resolve the litigation by entering into a class action lawsuit settlement agreement.

Class Members of the LegalZoom class action settlement include anyone who purchased a legal document or legal document assistant service from LegalZoom from September 15, 2005 through June 16, 2011.

As a Class Member, you’re entitled to several benefits from the LegalZoom class action settlement, including 60 days of free enrollment in LegalZoom’s Legal Advantage Plus program (for individuals) or the Business Advantage Pro program (for businesses). These programs are described in detail at www.LDALitigation.com.

In the event the programs are not available in your state, LegalZoom will have 12 months to make the programs available, or will provide Class Members in that state either $75 or 50% of the current base price of the document you obtained from LegalZoom, whichever is less.

Class Members who previously asked for, but did not receive, a refund from LegalZoom can opt to receive a cash payment of $100 or the current base price of the document they prepared using LegalZoom in lieu of the 60 days of free enrollment.

In order to receive any of these benefits from the LegalZoom class action lawsuit settlement, you must submit a claim form either online at www.LDALitigation.com or via mail so that it is received by May 15, 2012.

Claim forms and more information on your rights in the LegalZoom Class Action Lawsuit Settlement can be found at www.LDALitigation.com.

Further details on how to submit a valid claim form and ensure you receive your class action settlement benefits can be found in our Open Lawsuit Settlements section.

UPDATE: On Oct. 1, 2014, an appeals court upheld the LegalZoom class action settlement, ruling that its terms were fair and reasonable.