LegalZoom Faces Class Action Challenge Over Arbitration and Unauthorized Practice Claims

In a legal dispute that pits a former customer against LegalZoom, the plaintiff has recently contended that the online legal service provider’s efforts to compel arbitration in a proposed class action lawsuit should be rejected. The class action accuses LegalZoom of engaging in the unauthorized practice of law. The plaintiff’s argument, presented to a New Jersey federal judge, centers on the assertion that LegalZoom did not provide an adequate explanation for what it claims to be a binding arbitration agreement. This inadequacy, according to the former customer, undermines the enforceability of such an agreement in resolving the matter.

Further details on this legal confrontation can be accessed through Law360’s coverage.