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;