August 28, 2019 Headnotes: Ethics

Should We Let Funders Invest in Law Firms?

Bruce Green

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Unlike a corporation, a U.S. law firm may not have non-lawyer investors or shareholders. That is probably not a problem for a law firm with steady cash flows or one that can secure commercial loans. But it can sometimes pose a problem, particularly for law firms representing plaintiffs on a contingent-fee basis or otherwise financing their clients’ litigation.

Illustration by Sean Kane.

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