Illinois Governor Signs Bill Limiting Investor Influence on Law Firms
Legal Services Transactions Team Co-Leader Trisha Rich was cited in a Reuters article summarizing a new law in Illinois that regulates non-lawyer involvement in law firm decision-making. Gov. JB Pritzker signed House Bill (HB) 5487 on August 7, 2026, making the Land of Lincoln the second state to enact legislation that aims to restrict outside investors' influence on law firm operations as more and more legal leaders explore partnerships with management services organizations (MSOs) and alternative paths to capital access. HB 5487 prohibits entities that are not owned by lawyers, such as MSOs, from interfering with attorneys' professional judgment or hiring decisions. It also bans them from charging fees "directly or indirectly based" on a law firm's revenue, fees or profits. Trisha, who regularly advises on MSO deals, posed questions about the law's constitutionality and broad scope, telling Reuters it "intrudes on the Illinois Supreme Court's exclusive constitutional authority to regulate lawyers and the practice of law, while creating substantial uncertainty for Illinois lawyers, law firms and the many legitimate businesses that support them."
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