Financial-Peace-Plaza-e1501181251243

Ramsey Solutions, the personal finance media company founded by Dave Ramsey, has settled a lawsuit with a California real estate agent who criticized the company on YouTube.

Ramsey Solutions sued real estate agent Kevin Paffrath in 2018, claiming he violated the terms of a contract, stole trade secrets and disparaged the company online. Paffrath claimed the lawsuit was an attempt at censorship.

A December 2019 order dismissing the case doesn’t provide financial details about the settlement.

According to Ramsey Solutions’ complaint, Paffrath joined Ramsey’s Endorsed Local Providers program, essentially a directory of real estate agents, insurance agents and tax preparers vetted by Ramsey Solutions.

Ramsey Solutions gets a fee for referring clients to the businesses in the directory. 

Ramsey Solutions claims Paffrath didn’t communicate well with the company — which Paffrath disputes — and decided to remove him from the program.

Afterward, Paffrath mocked Dave Ramsey on his YouTube channel, and claimed the company provided cold leads. Ramsey Solutions also claims Paffrath disseminated proprietary information about the referral program.

The videos were taken down after Ramsey Solutions filed the lawsuit and remain inaccessible.

The settlement ends the roughly yearlong court case. The compromise follows a judge’s decision that would have allowed Ramsey Solutions lawyers to review Paffraths’ financial records.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.