Pre-Paid Legal Services, Inc. faces investigation on behalf of PRE PAID LEGAL SVCS

Oct. 13, 2009 - PRLog -- An investigation on behalf of investors in Pre-Paid Legal Services, Inc. (Public, NYSE-PPD) over possible violations of Federal Securities Laws by PRE PAID LEGAL SVCS .

If you purchased Pre-Paid Legal Services, Inc. (PPD) , you may be affected and you should contact the Shareholders Foundation, Inc. at:

Email: mail@shareholdersfoundation.com

Or at: +1 (858) 779 - 1554


According to the investigation by a law firm Pre-Paid Legal Services Inc. may have violated Securities Laws. The investigation focues on the following recent events: On October 6, 2009, Pre-Paid Legal Services reported the receipt of a subpoena from the Division of Enforcement of the United States Securities and Exchange Commission in connection with a “fact-finding inquiry”.  Pre-Paid Legal’s press release from October 6, 2009 stated as follows regarding the investigation: “The subpoena requires us to produce a variety of documents pertaining to our treasury stock repurchase program; our ADRA program and other marketing practices; membership statistical information; segment reporting; the FTC contingency disclosure; and other operational practices.” Additionally, Pre-Paid Legal Services Inc. stated that it was also responding to comments received from the Division of Corporation Finance of the SEC pertaining to its Form 10-K for the fiscal year ended December 31, 2008.
On October 6, 2009, Pre-Paid Legal’s common stock declined by $9.23 per share, approximately 18%, from $51.73 per share to close at $42.50 per share on heavier than usual volume.
Pre-Paid Legal Services, Inc., located in Ada, OK, designs, underwrites and markets legal expense plans. Pre-Paid Legal’s life events legal plans (referred to as Memberships) provide for a variety of legal services. In most states and provinces, standard plan benefits include preventive legal services, motor vehicle legal defense services, trial defense services, internal revenue service (IRS) audit services and a 25% discount off legal services not specifically covered by the Membership. Pre-Paid Legal Services reported in 2007 Total Revenue of $457.09million with a Net Income of $51.20million and in 2008 Total Revenue of $464.49million with a Net Income $60.17million. Shares of Pre-Paid Legal Services shares (PPD) traded recently at $42.09 per share, down from its 52weekHigh of $52.05 per share, $55.98 per share in February 2008, and $68.51 per share in July 2007.

Those who purchased Pre-Paid Legal Services, Inc. (PPD) , may be affected and should contact the Shareholders Foundation, Inc. at:

Email: mail@shareholdersfoundation.com

Or at: +1 (858) 779 - 1554

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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