Bankruptcy law firm files for Chapter 11 after losing advertising dispute
Law Firms
Bankruptcy law firm files for Chapter 11 after losing advertising dispute
May 3, 2024, 9:31 am CDT
A bankruptcy law firm in Minnesota has filed for Chapter 11 protection after losing a legal dispute with a competitor. (Image from Shutterstock)
A bankruptcy law firm in Minnesota has filed for Chapter 11 protection after losing a legal dispute with a competitor.
The LifeBack Law Firm filed its bankruptcy petition in the U.S. Bankruptcy Court for Minnesota on April 28.
Among the listed creditors is the LifeBack Law Firm competitor known as Hoglund, Chwialkowski & Mrozik, part of Hoglund Law in Roseville, Minnesota, which is owed $290,000 as a result of an arbitration award.
According to the Minnesota Star Tribune, the award stems from “a legal wrestling match” that began in January 2019, when Hoglund filed a lawsuit alleging that LifeBack was engaging in “click fraud.”
Hoglund claimed that Wesley W. Scott, president of the LifeBack Law Firm, was repeatedly clicking on internet trigger words that produced Google ads for Hoglund. The intent was to deplete Hoglund’s Google advertising budget, Hoglund alleged.
The LifeBack Law Firm “countersued Hoglund with its own list of complaints, most of them identical to Hoglund’s allegations,” according to the Minnesota Star Tribune. An arbitrator ruled for Hoglund.
In January, a Hennepin County, Minnesota, judge upheld the arbitration decision and said Hoglund was entitled to attorney fees.
The bankruptcy filing said the LifeBack Law Firm has nearly $1.2 million in assets and close to $1.8 million in liabilities.
