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No one is better prepared to declare bankruptcy than these guys.
Minnesota bankruptcy law firm files for bankruptcy after losing fight with another bankruptcy firm
One of Minnesota’s oldest bankruptcy law firms has filed for Chapter 11 bankruptcy protection after losing a five-year legal spat with another bankruptcy law firm over mutual claims of false advertising and “click fraud.”
St. Cloud-based LifeBack Law Firm, which has eight Minnesota offices, filed for protection from creditors Saturday in U.S. Bankruptcy Court in Minnesota. The petition notes LifeBack owes $290,000 to Hoglund, Chwialkowski & Mrozik, part of Hoglund Law in Roseville.
LifeBack President Wesley Scott could not be reached for comment.
According to the bankruptcy filing, the money owed to Hoglund stems from a court-approved arbitration award.
The bankruptcy filing is the culmination of a legal wrestling match that dates back five years.
In January 2019, Hoglund first sued LifeBack in Hennepin County District Court alleging false advertising, unfair enrichment, contract interference and deceptive trade practices.
Hoglund mainly contended that LifeBack, formerly Kain & Scott, had engaged in a costly scheme of “click fraud.”
Hoglund accused LifeBack’s President Wesley Scott of “excessively” clicking on trigger words on the Internet in an effort to force Hoglund’s paid advertisements to appear again and again on the screen. The repetitive action was allegedly intended to interrupt Hoglund’s online marketing efforts and to make the law firm quickly spend through its entire Google advertising budget and render its advertisements mute.
