NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com | Pre-Paid Legal: FTC papers part of ongoing process
Associated Press - November 20, 2009 2:35 PM ET
ADA, Okla. (AP) - Pre-Paid Legal Services Inc. is clarifying today that a draft lawsuit it has received from the Federal Trade Commission is part of an ongoing process.
The Ada-based company is an independent network of independent law firms.
The company had said yesterday it received a draft of a proposed lawsuit and that the FTC may decide to formally sue Pre-Paid Legal Services over allegedly misleading representations made by its identity theft prevention program.
The news sent shares down 19 percent yesterday to close at $33.27.
But today the company says that the proposed charges relate only to marketing of its Affirmative Defense Response System, which offers businesses and individuals a way to reduce risk of identity theft.
It also says it believes none of the membership fees collected through the program would be subject to refunds.
In afternoon trading today the stock rose $2.42, or 7.3 percent, to $35.69.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
