Liberty Tax Announces Settlement with ATAX, LLC

Rhea-AI Summary

Liberty Tax has resolved its lawsuit against ATAX, initially filed in February 2021, settling for over $500,000. The settlement includes a Consent Decree, prohibiting ATAX from unfair business practices, including infringement of Liberty's trademarks and interfering with its franchise agreements. Liberty Tax's CEO, Brent Turner, emphasized their commitment to protecting their brand and franchisee interests. This resolution highlights the company's vigilance against unfair competition, enhancing its market position in the tax preparation industry.

Positive

• Settlement of lawsuit with ATAX for over $500,000 bolsters brand protection.
• Consent Decree permanently prevents ATAX from engaging in unfair business practices.

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• None.

HURST, Texas, Jan. 25, 2022 /PRNewswire/ -- Liberty Tax, a leader in the tax preparation industry today announced that it had reached an agreement with ATAX to settle the lawsuit Liberty Tax filed in February of 2021 in the United States District Court for the Eastern District of Virginia. The lawsuit asserted claims for unfair competition, tortious interference, false designation of origin, and trademark infringement, among a host other causes of action.

In addition to a monetary payment of over $500,000.00, key provisions of the Settlement Agreement are memorialized in a Consent Decree, filed with the Court, which provides, among other things, that ATAX is permanently enjoined from (1) torturously interfering with Liberty's franchise agreements, (2) diverting or attempting to interfere with or divert any leases from Liberty, (3)  palming off any of ATAX's products or services as those of Liberty, including without limitation, by infringing on Liberty's trademarks, trade dress or logos, or otherwise falsely associating with Liberty, (4) possessing, misappropriating, using or disclosing Liberty's confidential information, and (5) accessing any of Liberty's computer systems or databases. The Court retains jurisdiction to enforce the Consent Decree.

"We are satisfied to have successfully defended our brand and Franchisee base by resolving this matter," stated Liberty Tax's Chief Executive Officer Brent Turner. "As has always been its practice, Liberty Tax will not hesitate to take legal action when necessary to defend its contractual rights and business interests, particularly against competitors, who utilize unfair business practices to their advantage to try and damage the goodwill and reputation of the Liberty Tax franchise system" he added.

 About Liberty Tax

Liberty Tax, a portfolio company of NextPoint Financial Inc. (TSX: NPF.U & OTC Pink: NACQF), is a tax preparation service with more than 2,700 locations, and serves approximately 1.6 million consumer and small business clients in the United States and Canada. Established in 1997, Liberty Tax is one of the nation's leading tax preparation companies, with franchised locations in every major metro area throughout the US and Canada. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on LinkedIn and Facebook.

About NextPoint Financial Inc.
NextPoint Financial Inc. is an all-inclusive marketplace for financial services empowering hardworking and underserved consumers and small businesses. NextPoint was formed through the July 2021 combination of Liberty Tax, a leading provider of tax preparation services, with LoanMe, an online lender and loan marketer. NextPoint's revenue and financial performance currently reflects the seasonality of its large tax preparation business wherein the bulk of its revenue is generated in the first and second calendar quarters of each year.

NextPoint's interim financial statements along with other regulatory documents are filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") www.sedar.com where they may be viewed by shareholders and other interested parties.

 

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SOURCE Liberty Tax

FAQ

What was the outcome of the Liberty Tax lawsuit against ATAX?

Liberty Tax reached a settlement agreement with ATAX, including a monetary payment of over $500,000 and a Consent Decree to prevent future unfair competition.

When was the lawsuit against ATAX filed by Liberty Tax?

The lawsuit against ATAX was filed in February 2021.

What are the key terms of the settlement between Liberty Tax and ATAX?

The settlement includes prohibitions against ATAX infringing on Liberty's trademarks and interfering with its franchise agreements.

How does the settlement affect Liberty Tax's business interests?

The settlement enhances Liberty Tax's brand protection and strengthens its position against unfair competition in the tax preparation industry.

What is the stock symbol for NextPoint Financial Inc., the parent company of Liberty Tax?

The stock symbol for NextPoint Financial Inc. is NACQF.