LegalShield
 | This article was considered for deletion, and requires cleanup according to the discussion. (July 2009) |
| File:PrePaidLegal logo.jpg | |
| Company type | Public (NYSE: PPD) |
|---|---|
| Industry | legal insurance |
| Founded | 1972 |
| Headquarters | Ada, Oklahoma |
Key people | Harland Stonecipher (founder, CEO, chairman) |
| Products | Legal services, Identity theft restoration |
| Revenue | $461M |
Number of employees | 813 Full Time |
| Website | http://www.prepaidlegal.com |
Pre-Paid Legal Services, Inc. NYSE: PPD is a corporation that offers specialized insurance and legal service products in the United States and Canada. The firm was founded on August 8, 1972, it went public in 1984. Pre-Paid Legal Services, Inc. is a member of the S&P 600 SmallCap index and the S&P 1500 Super Comp index.
Company Description
Pre-Paid Legal Services, Inc. is a ruthless pyramid scheme that takes advantage of young, hopeful people trying to make something of themselves. Thousands of poor saps get looped into this crap every year, and pay $250 to go to a convention is Las Vegas that is basically a fundraiser for next year. This company sustains itself almost entirely through recruiting other associates (many of whom quit or are forced to quit due to debt to this fucked up business within 6 months), and has less than 1/3 the amount of customers as employees because most people are smart enough to realize that nobody needs lawyer "insurance." Consultations are free anyway, and that's all Pre Paid really guarantees you'll get after you take into account all the limitations on their coverage - well unless you are trying to write a will, in which case they'll only charge you to have emergency access to free help with writing your will anywehere, anytime. PPL is a scam, and should be shut down before it robs any more innocent, vulnerable people.
History
Pre-Paid Legal Services began on July 11, 1969 when CEO and founder Harland C. Stonecipher was involved in a vehicle accident which left him with legal bills. He began researching the industry of European legal expense plans. On August 8, 1972, Harland Stonecipher created Pre-Paid Legal’s predecessor, The Sportsman’s Motor Club, offering legal expense reimbursement services as a motor service club. Pre-Paid Legal started selling plans through network marketing in 1983. Pre-Paid Legal went public on the NASDAQ National Market System in 1984, and two years later moved to the American Stock Exchange. On May 13, 1999, Pre-Paid Legal moved to the New York Stock Exchange, and within four months was listed as the 33rd fastest growing company on the NYSE, according to Equities Magazine. In 2000, Pre-Paid Legal made the Forbes list of the 200 Best Small Companies in America for the fifth year in a row. In 2007, Pre-Paid Legal made the Forbes list of the 200 Best Small Companies in America again. The company currently provides services in all 50 states, Washington, D.C., and five provinces in Canada, with over 1.7 million members. Currently most plans are sold through the network marketing system (also known as multi-level marketing). It is also sold as an employee benefit through payroll deduction.
Criticism
Pre-Paid Legal has come under fire by both former members and legal authorities, charging fraud, deception, and accounting irregularities.
- In 1997, after a FTC investigation, Pre-Paid Legal admitted misleading customers and suspended sales of living trusts.[1]
- In 2001, the Wyoming Attorney General classified Pre-Paid Legal as a "multi-level marketing" organization and won refunds for multiple customers who were defrauded by misleading earnings claims.[2] [3]
- Pre-Paid Legal has faced ongoing troubles in Missouri. After the company settled complaints in 2001,[4] a number of similar suits arose. The company won in a jury trial against two plaintiffs[4], but would later settle with more than 400 others, including one customer who was awarded $9.9 million. The company, and the U.S. Chamber of Commerce of which Pre-Paid Legal CEO Harland Stonecipher is a director,[5] have described the lawsuits against the company as "frivolous" and "abusive".[6]
References
- ^ http://www.nytimes.com/2006/11/13/business/13short.html
- ^ http://findarticles.com/p/articles/mi_qn4188/is_20081030/ai_n30951143
- ^ http://attorneygeneral.state.wy.us/CPU1PR113001.pdf
- ^ http://www.thestreet.com/_yahoo/stocks/melissadavid/10189148.html
- ^ http://www.uschamber.com/press/releases/2005/june/05-109.htm
- ^ http://www.uschamber.com/press/releases/2004/november/04-152.htm
- Smith, Melissa. "Pre-Paid Weathers Guilty Verdict". thestreet.com.
- MacMillan, Hoke. "Attorney General’s Office Nets Refunds From Multi-Level Marketer". attorneygeneral.state.wy.us.
- Rozett, Lisa. https://wsecure.prepaidlegal.com/pdf/usachamber.pdf . US Chamber of Commerce.
- Forbes. "Forbes 2007 Best 200 Companies in America". Forbes.com.
- Forbes. "Forbes 2008 Best 200 Companies in America". Forbes.com.
- Pre-Paid Legal. "Pre-Paid Legal Advisory Council". PrepaidLegal.com.
- Corsi, Jerome. "Prepaid Legal: From A Novelty to An Accepted Insurance Marketing Opportunity". Broker World.
- http://www.shareholder.com/ppd/ReleaseDetail.cfm?ReleaseID=205437
- http://wserver0.prepaidlegal.com/newCorp2/about_us/advisory_council.html