LegalZoom Suffers Setback in North Carolina

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[Correction: This post erroneously described an Alabama lawsuit against LegalZoom as active when, in fact, it had been dismissed in January 2014. See this post for a full explanation.] When LegalZoom issued a press release last month announcing that the South Carolina Supreme Court had issued a determination that the company is not engaged in the unauthorized practice of law in that state, the news was widely reported by news media and blogs. However, just two weeks later in neighboring North Carolina, a Superior Court judge handed the State Bar a partial victory…