Gavin Newsom signed AB 2305 on Sunday, which means California now has a blunt statutory answer to the question of what private equity is allowed to do once it has bought its way into a law firm’s back office.The law bars business entities from interfering with or attempting to “influence the professional judgment of a licensed attorney or litigant regarding any substantive litigation decision.” That means which cases a firm takes, which clients it signs, and when it settles. Violators, including...
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