Franchise News Release: Virginia Beach, VA - (Sep-26-2002)


Liberty Tax Service Prevails in False Advertising Appeal


In rulings issued September 23, 2002, Judge Raymond Jackson of the United States District Court in Norfolk ordered H&R Block to pay to Liberty Tax Service and thirteen of its local franchisees $438,404.11 in damages for false advertising by H&R Block in 2000, and $52,220.07 in attorney fees for successfully defending Block's appeals in this case.

The damages of $438,404.11 represent a share of Block's profits made from clients which they wrongfully diverted away from Liberty Tax in 2000 by using false advertising which inaccurately described their refund anticipation loans as speedy tax refunds, in violation of IRS regulations. Both the district court and the unanimous Fourth Circuit Court of Appeals had previously held that Block disseminated this false advertising, as the Fourth Circuit put it, with "a deliberate intent to mislead consumers and unfairly compete in the marketplace."

The additional $52,220.07 attorney fees award was for further attorney fees incurred by Liberty Tax Service in successfully defending two appeals filed by H&R Block in this case. Block had previously paid to Liberty Tax Service $325,035.18 in costs and attorney fees for successfully prosecuting their claims against H&R Block at trial. The attorney fees were awarded because the district court ruled that H&R Block's false advertising was done willfully and maliciously, targeting Liberty Tax Service.

Liberty Tax Service operates 614 locations throughout the United States and Canada. Liberty Tax Service is the fastest growing international tax service ever. The company has grown to the size it took the other national tax Franchises ten years to realize within the last five years. Liberty Tax Service specializes in computerized tax preparation, electronic filing, and refund anticipation loans.



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Liberty Tax Service
Are you serious about success? Do you have an entrepreneurial streak? Do you admire leaders who don't fit the mold? Then Liberty Tax Service franchise could be the ideal business opportunity for you! Our proven franchise operating system can help you achieve your goals of owning a successful tax preparation business.
 
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