Tuesday, March 10, 2009

Incorp Services Sues Legalzoom Over False Statements

This lawsuit is a little stale in the blogging world (filed about a month ago), but since it doesn’t seem to have gotten much press anywhere and it involves three of my favorite things (Nevada, business formation, and trademark law), I could not help but give it a passing mention.

On February 10, 2009, Incorp Services, Inc., (“Incorp”) a company that helps parties form corporations and other business entities throughout the United States and which also offers registered agent services for business entities nationwide, filed a lawsuit against Legalzoom.com, Inc. (“Legalzoom”), the “document preparation” company that also helps interested parties form corporations and other business entities, in the U.S. District Court for the District of Nevada. See Incorp Services, Inc., v. Legalzoom.com, Inc., Case No. 09-cv-00273 (D. Nev.). A copy of the complaint can be downloaded here.

Incorp alleges that since at least 2008, customers who have formed business entities through Legalzoom and who wanted to use Incorp as their registered agent have been told by LegalZoom’s telephone representatives that Incorp “is not in good standing” with several states, that Incorp “cannot be used” as a registered agent; that InCorp is “not licensed to do business in” certain states: that Incorp “cannot legally do business in” certain states; that InCorp is “not legal” in certain states; and other similar statements – all of which Incorp asserts are false given its good standing status in all fifty states and the District of Columbia.

Incorp’s causes of action are for “trade libel” under 15 U.S.C. 1125(a)(1)(B) (i.e., misrepresenting the qualities of Incorp’s services and commercial activities), defamation, and deceptive trade practices under Nevada law (N.R.S. § 598.0915). Incorp seeks injunctive relief along with a retraction from Legalzoom as well as compensatory and punitive damages, costs, and attorneys fees.

Query: I don’t suppose Legalzoom’s “document preparation” services covers preparing an Answer to this complaint.


Anonymous said...

here they go again.

Anonymous said...

Jeesh, are these guys in the corporation business or in the lawsuit business?