Springfield Slams The Door On Private Equity In Illinois Law Firms
Hoodline
Illinois lawmakers passed a bill banning private equity and hedge funds from controlling law firms, pending Governor Pritzker's signature.Summary
Illinois lawmakers passed House Bill 5487 on May 31, a measure that prohibits private equity firms, hedge funds, and other nonlawyer businesses from controlling law firms or influencing attorney judgment. The bill targets management-services organizations and fee-sharing arrangements, aiming to protect client confidentiality and lawyer independence. However, critics argue the broad definitions could inadvertently affect routine vendor relationships and face potential constitutional challenges. The legislation applies to law firms with less than $300 million in annual revenue and those earning most income from contingency fees, while larger firms are largely exempt. The bill now awaits Governor J.B. Pritzker's signature.
(Source：Hoodline)