In what court was the case against Liberty Tax Service, an affiliate of Ledgers, filed?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
K&A Publicidad, Inc. v. JTH Tax, Inc., d/b/a Liberty Tax Service, Liberty Tax, Inc. d/b/a Siempre Tax and John Hewitt, (Case No. CL17-4169), filed on September 5, 2017 in the Virginia Beach Circuit Court.
Asbestos Workers' Philadelphia Pension Fund, derivatively on behalf of Liberty Tax, Inc., v. John Hewitt. Defendant, and Liberty Tax, Inc., Nominal Defendant, (Case No. 2017-0883), filed on December 12, 2017 in the Court of Chancery of the State of Delaware.
Bablu Shahabuddin v. JTH Tax, Inc., Siempre Tax, and John Hewitt, (Case No. 2:18-cv-00016- MDS-DEM) filed on January 11, 2018 in the United States District Court for the Eastern District of Virginia.
JTH Tax LLC d/b/a Liberty Tax Service v. John T. Hewitt, Loyalty LLC, ATAX LLC, ATAX Franchise, Inc. and Yneva Marte (Case No.2:21-cv-00076-RBS-LRL) filed February 4, 2021 in the United States District Court for the Eastern District of Virginia.
United States of America v. Franchise Group Intermediate L 1, LLC d/b/a Liberty Tax Service, (Case No. 2:19-cv-00653-RAJ-DEM) filed on or around December 3, 2019 in the United States District Court for the Eastern District of Virginia.
Erie County Employees Retirement. System, on behalf of Liberty Tax, Inc. v. John T. Hewitt. Defendant, and Liberty Tax, Inc. Nominal Defendant, Case No. 2017-0914, was filed the Court of Chancery of the State of Delaware on December 22, 2017.
Source: Item 3 — LITIGATION (FDD pages 11–16)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, there were multiple cases filed against Liberty Tax Service. One case, K&A Publicidad, Inc. v. JTH Tax, Inc., was filed in the Virginia Beach Circuit Court. Another case, Asbestos Workers' Philadelphia Pension Fund, derivatively on behalf of Liberty Tax, Inc., v. John Hewitt, was filed in the Court of Chancery of the State of Delaware. Additionally, the case of Bablu Shahabuddin v. JTH Tax, Inc. was filed in the United States District Court for the Eastern District of Virginia.
Another case, JTH Tax LLC d/b/a Liberty Tax Service v. John T. Hewitt, Loyalty LLC, ATAX LLC, ATAX Franchise, Inc. and Yneva Marte was filed in the United States District Court for the Eastern District of Virginia. United States of America v. Franchise Group Intermediate L 1, LLC d/b/a Liberty Tax Service was filed in the United States District Court for the Eastern District of Virginia.
Finally, the case Erie County Employees Retirement. System, on behalf of Liberty Tax, Inc. v. John T. Hewitt was filed in the Court of Chancery of the State of Delaware. These lawsuits cover a range of allegations, from breach of contract and employment agreements to fraud and trademark infringement. The outcomes vary, including settlements, dismissals, and ongoing litigation.