Colorado passed a bill on Tuesday that targets out-of-state alternative business structures—legal entities that allow ownership or management of law firms by non-lawyers.
The bill (HB26-1421) prohibits a lawyer or law firm from providing any portion of legal fees or revenue to a non-lawyer or entering into a financial or contractual agreement with an alternative business structure. The bill will now move to Governor Jared Polis’ desk for signature.
Colorado is the latest state to crack down on non-lawyer owned firms, which have become a popular area of investment for capital providers such as hedge funds, private equity ...
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