By Loné Beasley
ADA — Pre-Paid Legal Services, Inc. announced Thursday the Ada firm received an additional subpoena from the Securities and Exchange Commission (SEC) Tuesday as a part of an ongoing inquiry into its activities. The subpoena requests documents relating to certain membership information, member complaints about provider law firms, efforts to achieve compliance with all payment card industry requirements, the resignation of Harland C. Stonecipher as chief executive officer and president, and the resignation of Tom Smith as a director. Stonecipher stepped aside April 1, Smith in March.
A press release from Pre-Paid Legal said the SEC has stated the inquiry is non-public and should not be construed as an indication by the SEC or its staff that any violation of law has occurred, nor should it be considered a reflection upon any person, entity or security.
Company officials say they will continue to cooperate with the staff of the SEC and seek a resolution of this matter.
“We believe our products are one of a kind, life events legal service plans,” the press release said. “Our plans provide for legal service benefits provided through a network of independent law firms across the U.S. and Canada, and include unlimited attorney consultation, will preparation, traffic violation defense, automobile-related criminal charges defense, letter writing, document preparation and review, and a general trial defense benefit. We have an identity theft restoration product we think is also one of a kind due to the combination of our identity theft restoration partner and our provider law firms.”
According to The Oklahoman, trading in Pre-Paid shares on the New York Stock Exchange was halted briefly Thursday when news of the inquiry was announced and traded heavily after resuming, closing at $39.21.