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TheStreet.com also noted that the firm had had some results in court, including the overturning of a fraud verdict and the defeat of a class action lawsuit alleging the corporation was a pyramid scheme. The business and the Oklahoma Chamber of Commerce, which had Stonecipher on its board of directors, called the lawsuits “frivolous” and “abusive”. In November 2006, Pre-Paid announced plans to commit $27.four million to repurchase shares owned by executives. LegalShield plans present the most comprehensive and reasonably priced assistance out there.
A jury ruled in favor of the business in the first suit. In the second, a jury located Pre-Paid and Stonecipher guilty of deceptive advertising and fraud and required them, in November 2005, to spend $9.9 million in punitive damages. TheStreet.com reported that Pre-Paid faced additional lawsuits filed by 400 Mississippi plaintiffs.
In January 2011, Pre-Paid Legal agreed to merge with entities formed by MidOcean Partners, a New York private equity firm that describes itself as “focused on the middle market place”. The deal closed on June 30, 2011, and the business as soon as once again became privately held. In July 2011, Rip Mason started serving as LegalShield’s CEO. On September ten, 2011, the company announced that it would change its name to LegalShield as component of an all round re-branding initiative. In 2004, approximately 250 plaintiffs filed about 30 lawsuits in Alabama against Pre-Paid, all of which had been dismissed or settled by 2006. Pre-Paid faced two lawsuits in Mississippi, one particular in October 2004, and the other in February 2005.
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