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TheStreet.com also noted that the corporation had had some success in court, which includes the overturning of a fraud verdict and the defeat of a class action lawsuit alleging the firm was a pyramid scheme. The firm and the Oklahoma Chamber of Commerce, which had Stonecipher on its board of directors, named 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 complete and cost-effective assistance obtainable.
A jury ruled in favor of the enterprise in the initially suit. In the second, a jury located Pre-Paid and Stonecipher guilty of deceptive advertising and fraud and needed 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 industry”. The deal closed on June 30, 2011, and the enterprise when once again became privately held. In July 2011, Rip Mason began serving as LegalShield’s CEO. On September 10, 2011, the corporation announced that it would transform its name to LegalShield as element of an all round re-branding initiative. In 2004, roughly 250 plaintiffs filed about 30 lawsuits in Alabama against Pre-Paid, all of which were dismissed or settled by 2006. Pre-Paid faced two lawsuits in Mississippi, business – Going in Yenihayatkoyu – 1 in October 2004, and the other in February 2005.
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