LegalShield controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile5 entries
2007
FTC investigation of identity-protection marketing
The FTC investigated marketing claims concerning the company's identity-theft service and Affirmative Defense Response System. Marketing materials were revised in 2009, and the investigation ended in 2010 without enforcement action.
2005
Mississippi deceptive-advertising and fraud verdict
A jury found Pre-Paid Legal and Harland Stonecipher liable in a proceeding involving deceptive advertising and fraud and awarded $9.9 million in punitive damages. Other litigation produced different outcomes, including reversal of a fraud verdict and defeat of a pyramid-scheme class action.
2001
Wyoming income-representation dispute
Wyoming's attorney general challenged income representations used to promote the associate program. The company denied violating the law but agreed to modify marketing and make payments that included refunds to certain participants.
2000
CBC examination of recruitment practices
CBC Television's Marketplace examined Pre-Paid Legal's multi-level marketing operation and criticized aspects of its recruitment practices, including the sale of training materials to associates.
2000
SEC accounting scrutiny and restatement
The SEC required the company to expense sales commissions rather than treat them as assets. The resulting restatement materially reduced reported earnings and stockholders' equity for 2000.