ABA Issues Ethics Guidance On Lawyers Investing In Alternative Business Structures
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SEPTEMBER 8, 2021
With both Arizona and Utah now allowing nonlawyers to deliver legal services through alternative business structures, the American Bar Association today issued a formal ethics opinion that addresses the question of whether lawyers outside those states may passively invest in an ABS. The issue hinges on ABA Model Rule of Professional Conduct 5.4 , which prohibits lawyers from sharing fees with nonlawyers or practicing in an entity in which a nonlawyer has an ownership interest.
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