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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.