LegalZoom Class Action Lawsuit

A class action against LegalZoom alleges that the online legal document preparation service uses unfair and deceptive business practices. It claims to “customize” its documents, but all it does is change the name and identifying information.

Katherine Webster, executor of the estate of Anthony Ferrantino and trustee of the Anthony J. Ferrantino Living Trust, bought estate planning documents from LegalZoom and later had to hire an attorney to fix the documents. She sues, claiming LegalZoom makes the following misrepresentations:

• When it says that the documents are reviewed for accuracy and reliability, it means that there is absolutely zero attorney support.  This gives customers a false sense of security.
• When it claims to be great in so many ways, it means that you should click all the links until you come to the disclaimer page.  This page, which is in much smaller font, negates many of the promises made.
• When it says that virtually anyone can use its product, it means that some problems are too complex for it to address, but it doesn’t tell customers which ones.

“Webster claims the defendants failed to comply with laws and regulations governing practice of law in California, led customers to practice law without a license, assisted in unauthorized practice of law, and used fraudulent business practices. She seeks disgorgement and punitive damages for negligence, elder financial abuse, consumer law violations and illegal and unfair business practices.”

Dan McCue, Class Claims LegalZoom is Unfair & Misleading, Courthouse News Service, June 1, 2010.   

Special thanks to Jim Hillhouse (Wealth Counsel) for bringing this to my attention.