Thursday, June 4, 2009

Incorp and Legalzoom Settle Trade Libel Lawsuit

I previous wrote (link here) about the lawsuit filed by 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, Inc. (“Legalzoom”), the “document preparation” company that also helps interested parties form corporations and other business entities. See Incorp Services, Inc., v., Inc., Case No. 09-cv-00273 (D. Nev.).

Incorp alleged that customers who formed business entities through Legalzoom and who wanted to use Incorp as their registered agent had been told by LegalZoom’s 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 maintained are false given its good standing status in all fifty states and the District of Columbia.

On May 27, 2009, the parties notified the court that the dispute had been resolved. A stipulation for dismissal with prejudice was filed with the court on June 2, 2009. No terms of the settlement were disclosed. Both sides will bear their own attorneys fees and costs.

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