Monday, July 20, 2009

Incorp Services Sues Nevada Corporate Services for False Advertising

I previously wrote (link here) regarding the lawsuit filed by Incorp Services, Inc., (“Incorp”), a corporate formation company which also offers registered agent services for business entities nationwide, against over some allegedly false statements being made by Legalzoom representatives about Incorp’s registered agent services. That case ultimately was settled by the parties.

On Friday, Incorp filed another action to fight against what it describes as false statements made by another competitor – Nevada Corporate Services, Inc. (“NCS”). See Incorp Services, Inc. v. Nevada Corporate Services, Inc., Case No. 09-cv-01300 (D. Nev. July 17, 2009). A copy of the complaint can be downloaded here.

Incorp claims that NCS sent out a letter in May to many of Incorp’s clients claiming that Incorp “may be discontinuing its services” and that such discontinuance of services may leave the client “vulnerable and at risk.” The letter supposedly included some criticisms about registered agent services and insinuating that such statements were about Incorp. Finally, the letter stated that Incorp’s clients may be “victimized by a lack of service and professionalism” by Incorp, that they may be “devastated by” and opened up to “strategic vulnerabilities” by Incorp’s failure to fulfill its statutory duties.

Incorp argues that NCS’s statements are false and defamatory, have caused Incorp immediate and irreparable harm, and were sent out knowingly, willfully, maliciously, and with the intent to harm Incorp. Incorp’s causes of action are for false advertising under 15 U.S.C. §1125(a) and defamation.

July 21, 2009 Update: Las Vegas Sun reporter Steve Green also reports (link here) on the lawsuit filing along with some interesting background regarding past litigation involving Incorp.

No comments: