Illinois Lawmakers Limit Non-Lawyer Investor Influence in Law Firms to Protect Attorney-Client Relationship
Illinois has enacted legislation to restrict the involvement of private equity and non-lawyer interests in law firms. The legislation, known as House Bill 5487, aims to protect the attorney-client relationship by limiting the creation and use of alternative business structures (ABS) and management services organizations (MSOs) in law firms. These structures allow non-lawyers to own and lead law firms or have ownership interests in exchange for providing business services. The bill prohibits non-lawyers from interfering in attorneys' professional judgment, owning client records, or charging fees based on attorneys' revenues. The measure has garnered support from both the Illinois Trial Lawyers Association and the Illinois Defense Counsel, indicating a rare political alignment. The bill awaits the signature of Governor JB Pritzker, who is expected to endorse it. 
