Updated: LegalZoom, the purveyor of online interactive self-help legal documents, announced in a press release this week that the South Carolina Supreme Court has approved the company’s business practices, which have been challenged in a number of state courts as unauthorized practice of law.

According to a report (PDF) by the state supreme court’s referee handling the case, LegalZoom was offering interactive self-help documents that were like ones already offered by various state and local agencies. Though the company basically was found to be operating properly under South Carolina law, it agreed to pay the plaintiff’s lawyers $500,000 in settling the matter.

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