H&R Block to face False Advertising Claims

Jackson Hewitt Wins Court Verdict

Jackson Hewitt Tax Service Inc. (NYSE: JTX) the Plaintiff in an action, won the right to seek additional evidence, following a court motion brought by H&R Block Inc (NYSE: HRB).  This was an attempt by the second largest United States tax preparer to have the lawsuit brought by Jackson Hewitt dismissed.

It originates from a claim by the Plaintiff Jackson Hewitt that H&R Block made “false and misleading” claims, concerning errors in returns prepared by the Plaintiff. It was alleged by Jackson Hewitt that the Defendants made false advertising claims regarding “errors” in tax returns completed by the Plaintiff. A spokes-person on behalf of H&R Block has stated that they “stand behind their advertisements.

The claims allegedly relate to the “Second Look Review” service, provided by H&R Block Inc, in connections with reviews made by them, of clients past tax returns prepared by other companies. The suit brought by the Plaintiff Jackson Hewitt is asking the Court to prevent “HRB” from making the allegedly false claims and reports indicate that a claim for unspecified damages has been submitted.

Reports indicate that the fortunes of both parties involved in this court action, have seesawed in recent times. Jackson Hewitt Tax Service Inc and H&R Block Inc are recognized as the largest tax preparers in the United States. Both organizations have lost and managed to regain, funding for highly lucrative, RAL tax-refund loan products. This has in turn, been counteracted by a regulatory restriction on the banks funding these loans.