California Takes Up Law Firm Ownership Fight After ABA Sidesteps

California lawmakers are set to vote before the end of the month on legislation that would allow the California bar to test new legal service models to make them more affordable. An amended version of the bill would still prevent non-lawyer companies from co-owning firms, however, and ban the sharing of legal fees with non-lawyers, thus preventing firms from going public or taking investments from litigation funders and others. Despite these developments, William Farrell Jr. of Longford Capital still predicts that California will eventually loosen its regulations.

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Hedge Fund Lawsuit Financing Poised for SEC Enforcement Scrutiny

The SEC’s enforcement lawyers and examiners are moving closer to gathering data on investments hedge funds make in support of litigation, as the financing arrangements grow in popularity. Under the proposed reporting, funds would be required to disclose the percentage of their money that goes toward litigation finance, as part of a net asset value calculation that excludes liabilities.

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Legal consultant limelight: Justine Maleson

Justin Maleson of Longford Capital predicts even more widescale adoption and continued innovation in litigation funding over the next decade. He expects to see several states follow Arizona’s lead in allowing non-lawyer ownership of law firms and the continued development of defense funding offerings.

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