Jackson Hewitt Tax Service Inc. (fka JHTXQ)

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H&R Block Must Face False Advertising Claims brought by Jackson Hewitt, Judge Says

Mar 21, 2011 5:50 PM PT

Business ExchangeBuzz up!DiggPrint Email .H&R Block Inc. (HRB) lost a bid to get a lawsuit dismissed that was brought by Jackson Hewitt Tax Service Inc. (JTX), the second-largest U.S. tax preparer, accusing its competitor of making “false and misleading” claims about errors in returns prepared by Jackson Hewitt.

Jackson Hewitt alleged that its larger rival made a “highly material and false and disparaging advertising claim” that it “found errors in two out of three Jackson Hewitt tax returns,” according to the complaint.

In a one-page order today, U.S. District Judge Alvin K. Hellerstein in Manhattan wrote that Parsippany, New Jersey- based Jackson Hewitt should be allowed to seek further evidence on the issues and that “plaintifff has alleged sufficient allegations to survive the motion to dismiss” by H&R Block.

The claims were made in connection with the “Second Look Review” service of H&R Block, the biggest U.S. tax preparer, which reviews customers’ past tax returns prepared by other companies, according to the complaint.

The suit asks the court to bar H&R Block from making the allegedly false claims, plus unspecified damages.

“H&R Block stands behind our advertisements and will vigorously defend our claims,” Kate O’Neill Rauber, a spokeswoman for Kansas City, Missouri-based H&R Block, said in a statement.

The case is Jackson Hewitt Inc. v. H&R Block Tax Services LLC, 11-cv-00641, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Pamela MacLean in U.S. District Court, Northern District of California in San Francisco;






http://www.bloomberg.com/news/2011-03-22/h-r-block-must-face-false-advertising-claims-by-jackson-hewitt-judge-says.html?cmpid=yhoo



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