States Advance Ban on PE Law Acquisitions

Lawmakers in California, Illinois, and Colorado introduced bills to bar private‑equity firms and corporate investors from acquiring law practices via MSOs.
California’s Assembly Bill 2305 passed the Assembly; Colorado’s bill bans revenue sharing with non‑lawyers; Illinois bill passed the House and awaits Senate approval.
Despite legislation, private‑equity activity rises, with Blackstone backing AI firm Norm AI and Uplift Investors funding a Louisiana personal‑injury firm.
Holland & Knight partner Trisha Rich noted 15 completed MSO deals and a pipeline of about 100, questioning the motives behind the bans.