Pre-Paid stock slumps on weak sales, recruitment figures

Pre-Paid stock fell more than 9 percent Monday, making it the ninth-biggest percentage loser among shares traded on the New York Stock Exchange.

Company officials declined to comment for this story.

Pre-Paid sold 28 percent fewer new memberships during the third-quarter when compared to the same period a year ago, the company announced late Friday. The number of new memberships sold in the quarter fell to 125,912 from 175,022.

At the end of the quarter, Pre-Paid had more than 1.4 million active legal service customers — down 3.4 percent from a year ago. Each of those customers pays an average annual fee of $303.70.

Pre-Paid sells monthly subscriptions to a limited package of legal services through a multilevel marketing network of independent sales associates. Those associates can earn more money by recruiting new sales people to their network.