States Advance Ban on Private‑Equity Law Acquisitions

Lawmakers in California, Illinois and Colorado are advancing bills to prohibit private‑equity firms and corporate investors from acquiring law practices via MSOs.
California’s Assembly Bill 2305 passed the Assembly; Illinois bill passed the House and awaits Senate; Colorado bill bans revenue sharing with non‑lawyers.
Private‑equity activity continues, with Blackstone investing in AI‑focused firm Norm AI and Uplift Investors backing a Louisiana personal‑injury firm.
Holland & Knight partner Trisha Rich reported completing 15 MSO deals and working on about 100 more, highlighting industry push‑back.