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Franchise News Release: Virginia Beach, VA - (Sep-26-2002) Liberty Tax Service Prevails in False Advertising AppealIn 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. This web site and the information contained herein does not constitute the offer or sale of a franchise. There are certain states that require the registration of an FDD before the franchisor can advertise or offer the franchise in that state. This franchise may not be registered in all registration states and may not offer franchises to residents of those states or to persons wishing to locate a franchise in those states. The offer and sale of a franchise can only be made through the delivery and receipt of a Franchise Disclosure Document (FDD). |
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| Liberty Tax Service Prevails in False Advertising Appeal - Sep 26,2002 |
| Liberty Tax Service Reports Preliminary Financial Results - May 22,2002 |
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