LegalShield/Legal Shield (formerly Pre-Paid Legal)

What’s been traditionally known as Pre-Paid Legal is now known as LegalShield. According to a LegalShield press release, the name change is part of a branding initiative. Mid Ocean partners (who acquired Pre-Paid Legal and took it private) believes there is untapped room for future growth.

Pros of switching to LegalShield

Bad Branding is gone: The phrase Pre-Paid Legal has become associated with lawsuits and accusations of an illegal pyramid scheme. Justified or not, they have left the name Pre-Paid Legal with a negative impression. The name LegalShield is fresh and perhaps a better choice.

Less Transparency: Being privately owned, LegalShield will not require the same level of transparency it once did. No longer will the company be mired in SEC investigations over what many consider to be questionable (though probably common) accounting practices.

Cons of switching to LegalShield

NYSE status gone: Being privately owned, LegalShield will not be able to boast an NYSE listing. This was one of the strengths Pre-Paid Legal boasted.

Short-Selling scapegoats gone: Being owned by a private equity firm, LegalShield doesn’t have to worry about short-sellers trying to drive down its stock price. Of course, what this also means is that LegalShield won’t have short-sellers as a scapegoat.

LegalShield moving forward

It will be interesting to see how this all plays out. Will LegalShield’s recruiting practices remain similar to Pre-Paid Legal's? Will its marketing be as heavily dependent on its associates or will it find less controversial ways of marketing its product? Will the product change (I imagine the Legal Shield won't be going away). Will its retention rates be any better? Of course, being private means we likely won’t be privy to things like membership retention rates.