Bills to Rein in Outside Investment in Law Firms Advance in California, Illinois

Legal ethics attorney Trisha Rich was cited in a Reuters article about legislation advancing in California and Illinois that would impose new limits on outside investment and nonlawyer involvement in law firms. The article examined how the proposed measures respond to growing interest in management services organizations (MSOs) and alternative business structures (ABS), while also raising concerns about how broadly such laws could be applied. Ms. Rich cautioned that the Illinois bill, as written, could sweep far beyond its stated purpose of limiting private equity's influence by unintentionally restricting common administrative outsourcing arrangements and other litigation-related financing models.

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