Pre-Paid Legal Services, a $359 million multi-level marketer of legal expense plans based in Ada, loves a good story.
Pre-Paid's founding legend is such a whopper. In 1969, company founder Harland Stonecipher was involved in a car accident. The other driver survived the crash. But, according to Stonecipher's memoir, "I faced thousands of dollars in legal costs stemming from an accident in which I was blameless."
Stonecipher's version is incomplete. Business Week Online interviewed his attorney at the time and reviewed copies of the suits. The attorney said that Stonecipher sued first for roughly $125,000. The other driver later sued Stonecipher for less. He ultimately settled for $3,000.
According to the attorney, Stonecipher's version "made a lot better story if he was sued first."
As its employees, customers, and shareholders have seen, Pre-Paid's entire operation is based on such "better stories."