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LegalZoom Preps for IPO & Class Action Litigation

While I haven’t been able to put my finger on whether the concept is genius, predatory, or just the unauthorized practice of law, there’s no denying that LegalZoom is at the very least, attracting investors.  According to TechCrunch, LegalZoom recently raised $66 million in investments from Kleiner Perkins and Institutional Venture Partners bumping its total funding to $100 million and confirming suspicions that an IPO is definitely on the horizon. The document company that boasts its ability to provide customers with “trial tested documents” at flat rate prices isn’t winning much support from the state bars around the country, and Connecticut is no exception.

In an informal opinion, a Connecticut Bar Association Committee found LegalZoom to have engaged in the unauthorized practice of law in Connecticut by selling its document preparation services to Connecticut consumers.  Missouri has taken legal action against LegalZoom by filing a $5 million class action suit against the document preparation company.  The case is set to begin trial on August 22.  All eyes will be on the Missouri class action to see what effect the outcome of a multi-million dollar lawsuit will have on LegalZoom’s plans for an IPO, and how many other states will follow with additional lawsuits.

4 Responsesto “LegalZoom Preps for IPO & Class Action Litigation”

  1. Ginger Bailey says:

    All of my adult life I have watched attorneys treat “Self Represented” parties despicably. Legal zoom is a beacon of light to those people who either cannot afford an attorney or who have been treated abusively by an attorney. Lawyers today lie with impunity, they don’t allege any longer, they state facts for which there is no evidence, and they act with callous disregard toward anyone correcting them. With hubris they pretend to speak for their clients. As a lawyer you do not… you represent your client. As a lawyer you may know more about the law but I can tell you for sure your client knows more about his case and the facts. The only ones being protected by lawyers today are other lawyers through footsie. Lawyers “don’t sue other lawyers” even if the offense is blatant. Shame on all of us. We have abused the power bestowed upon us and the client has suffered. Legal zoom is a blessing. Legal zoom is freedom of speech. And only lawyers would find a way to compromise the first amendment. Get over your fear and find out why a client would rather go to legal zoom than to you!

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