Liberty Tax controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2023
NextPoint Financial bankruptcy
Liberty Tax’s parent filed for bankruptcy protection in Canada and sought Chapter 15 protection in the United States.
2021
Liberty Tax sues former CEO over alleged interference and use of confidential information
Lawsuit filed
Liberty Tax filed a lawsuit on February 4 against former CEO and founder John Hewitt, alleging that he used confidential company information to recruit franchisees, confuse customers and interfere with its franchise agreements. The article reports allegations, not a court determination.
Source excerpt
The lawsuit filed Feb. 4 in U.S. District Court for the Eastern District of Virginia in Norfolk claims that Hewitt’s Loyalty Brands has “engaged in an extensive email campaign” seeking investors through Liberty Tax contacts.
Virginia Beach-based Liberty Tax contends in its lawsuit, filed Feb. 4, that Hewitt isn’t just competing with his new Loyalty Brands company, but also using confidential and proprietary information from his time leading Liberty Tax to recruit franchisees, confuse customers and seek revenge on his old company.
The tax preparation company accused Tangent Point and Enaye of trademark infringement, unjust enrichment and unfair competition.
2019
Litigation involving former chief executive and ATAX
After Hewitt formed competing business ATAX, Liberty Tax sued him over allegations that inside information was used to take business from Liberty.
2017
Leadership upheaval amid tax-fraud allegations
Founder and chief executive John Hewitt was terminated after poor financial performance and office closures associated with allegations of tax fraud.
2009
Unfair-business-practices order concerning refund-anticipation loans
Liberty Tax was ordered to pay $1.3 million over unfair business practices related to refund-anticipation loans.
Department of Justice settlement over alleged inflated returns
The company settled with the Department of Justice over allegations that some franchise locations inflated customer tax returns between 2013 and 2018.