FDD Items 3 & 4 · 2025 filing
H&R Block litigation history
What H&R Block disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 8
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Two settled compliance fee class actions (Lopez/Perras, total $660K); Form 8863 MDL settled $150K; Vocational Consultants settled $840K; FTC administrative complaint settled $7M; Colorado Tax Specialists (ongoing, Missouri Franchise Act claim dismissed without prejudice); H&R Block v. Calise (settled May 2025 with consent injunction). One lawsuit against franchisee (Sandra Moore) for restrictive covenant enforcement.
Item 3 (litigation) · 8 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Colorado Tax Specialists Co. v. H&R Block Tax Services LLC
pendingBrought by a franchisee · filed 2025 · United States District Court for the Western District of Missouri · 4:25-CV-00047-RK
“… (Case No. 4:25-CV-00047-RK)”Page 16 of the 2025 FDD, Item 3
Outcome: “In August 2025, the court dismissed plaintiff”
Concluded (2)
H&R Block Tax Services LLC v. Calise Enterprises, LLC, Frank J. Calise and Edward H. Rodriguez
settledBrought by the franchisor · filed 2024 · United States District Court for the Western District of Missouri · 4:24-CV-00513-DGK
“H&R Block Tax Services LLC v. Calise Enterprises, LLC, Frank J. Calise and Edward H. Rodriguez (Case”Page 16 of the 2025 FDD, Item 3
Outcome: “In May 2025, the parties reached an agreement to settle the case”
Vocational Consultants, LTD, et al. v. H&R Block Tax Services LLC, et al.
settledBrought by a franchisee · filed 2013 · Circuit Court of Crawford County, Illinois · 13-L-11
“Vocational Consultants, LTD, et al. v. H&R Block Tax Services LLC, et al. (Case No. 13-L-11)”Page 16 of the 2025 FDD, Item 3
Outcome: “The company reached an agreement to settle the case for $840,000 in December 2018.”
Status not stated in the filing (1)
H&R Block Tax Services LLC v. Sandra Moore
Brought by the franchisor · filed 2024 · United States District Court for the Western District of Missouri · 4:24-CV-00700-FJG
“… Case No. 4:24-CV-00700-FJG (W.D. Mo. 2024)”Page 17 of the 2025 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (4)
In the Matter of H&R Block, Inc., HRB Digital LLC, and HRB Tax Group, Inc.
concludedGovernment or regulatory action · H&R Block, Inc., HRB Digital LLC and HRB Tax Group, Inc. · filed 2024-02-23 · Federal Trade Commission (administrative) · FTC Docket No. 9427
“… (FTC Docket No. 9427)”Page 16 of the 2025 FDD, Item 3
Outcome: “the company reached an agreement to resolve the allegations for a monetary payment of $7M”
Form 8863 Class Actions
settledBrought by a third party · H&R Block (the company) · filed 2013 · United States District Court for the Western District of Missouri (MDL) · MDL No. 2474/Case No. 4:13-MD-02474-FJG
“… A series of putative class action lawsuits were filed against the company in various federal courts and one state court beginning on March 13, 2013.”Page 15 of the 2025 FDD, Item 3
Outcome: “The court granted preliminary approval of the settlement on January 12, 2016, and final approval on May 23, 2016.” (page 16)
Manual H. Lopez, III, et al. v. H&R Block, Inc., H&R Block Tax Group, Inc., and HRB Technology LLC
settledBrought by a third party · H&R Block, Inc., H&R Block Tax Group, Inc. and HRB Technology LLC · filed 2012-04-16 · Circuit Court of Jackson County, Missouri · 1216-CV12290
“… (Case No. 1216-CV12290)”Page 15 of the 2025 FDD, Item 3
Outcome: “This case and the Perras case referenced below were settled for a total sum of $660,000, and the case was dismissed on May 15, 2017.”
Ronald Perras, et al. v. H&R Block, Inc., H&R Block Tax Group, Inc., and HRB Technology LLC
settledBrought by a third party · H&R Block, Inc., H&R Block Tax Group, Inc. and HRB Technology LLC · filed 2012-04-19 · United States District Court for the Western District of Missouri · 4:12-cv-00450
“… (Case No. 4:12-cv-00450)”Page 15 of the 2025 FDD, Item 3
Outcome: “This case and the Lopez case referenced above were settled for a total sum of $660,000, and the case was dismissed on May 15, 2017.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigation matters including FTC settlement, class actions on deceptive fees, and restrictive covenant disputes indicate compliance and reputational issues
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?