Pre-Paid Legal Plays Down FTC Draft Complaint; Shares Rise
DOW JONES NEWSWIRES
Pre-Paid Legal Services Inc. (PPD) sought to undo some of the damage done by
its disclosure Thursday that it got a draft complaint from the Federal Trade
Commission, saying on Friday it believes the move is merely "the next step in an
ongoing process."
Shares slumped 19% Thursday after the developer, underwriter and marketer of
legal service said it got the complaint related to its identity theft shield and
affirmative defense response system.
But Pre-Paid Legal on Friday sought to "clarify" the prior day's announcement,
saying it believes the draft complaint is just "the next step" in a process that
began in March 2007 and "has been the subject of prior releases and disclosures
in previous public filings."
The draft complaint "narrowly focuses" on the company's marketing of the
affirmative defense response system, which provides businesses and their
employees with a way to reduce the risk of identity theft, and specific issues
regarding identity theft and data privacy issues. Pre-Paid Legal said Friday
that injunctive relief proposed by the FTC only pertains to affirmative defense.
Shares rose 5.2% premarket to $35.00. The stock through Thursday was down 11%
this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-20-090925ET
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