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An Arkansas-based lawyer, Jody Shackelford, has initiated legal action against the well-known national plaintiffs law firm Morgan & Morgan. Shackelford’s lawsuit, filed in an Arkansas federal court, accuses the firm of engaging in unfair and deceptive advertising practices that he claims harm his business.
Allegations of Misleading Advertisements
Shackelford, a personal injury attorney, asserts that Morgan & Morgan’s television advertisements violate state attorney professional conduct rules. The ads, which feature dramatizations and client testimonials, include disclaimers such as “DRAMATIZATION” and “ACTUAL CLIENT.” However, Shackelford argues that these disclaimers are misleading and falsely suggest compliance with local regulations.
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Violation of FCC Rules
In addition to state conduct rules, the complaint alleges that Morgan & Morgan’s commercials breach Federal Communications Commission (FCC) rules by presenting false or misleading information. Shackelford claims that these advertisements have allowed Morgan & Morgan to attract Arkansas clients, diverting potential clients from local attorneys and giving the firm an unfair competitive edge.
Response from Morgan & Morgan
Dave Falkenstein, a spokesperson for Morgan & Morgan, has dismissed the lawsuit as baseless, stating that it “is meritless and will be dismissed.”
Impact on Local Law Firms
Shackelford, who operates a small two-lawyer firm, highlighted the challenges of competing with a large national firm. He mentioned that Morgan & Morgan’s aggressive marketing strategies, backed by substantial advertising budgets, put smaller firms at a significant disadvantage. According to the U.S. Chamber of Commerce Institute for Legal Reform, Morgan & Morgan spent nearly $240 million on TV ads and $40.3 million on digital ads in 2023 alone.
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Previous Legal Challenges
This is not the first time Morgan & Morgan’s advertising practices have come under scrutiny. In 2017, a personal injury firm in Pennsylvania filed a lawsuit against Morgan & Morgan, alleging that its local ads misled consumers about the firm’s operations in the state. Morgan & Morgan requested the court to dismiss the lawsuit, and the case was subsequently dropped in 2018.
Broader Implications
Micah Buchdahl, a New Jersey-based ethics attorney specializing in law firm marketing, noted that Morgan & Morgan’s marketing approach has significantly impacted personal injury and other law firms nationwide. Many firms have had to increase their advertising efforts to compete with Morgan & Morgan’s extensive media presence.
The outcome of Shackelford’s lawsuit remains to be seen, but it underscores the ongoing tension between large national firms and smaller local practices over advertising practices and client competition.
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