California AB2305 regulates corporate legal funders to prevent unauthorized practice of law.

California AB2305 adds regulations to the Business and Professions Code to ensure corporate legal funders do not interfere with litigation decisions. The law defines corporate legal funders and prohibits them from influencing attorneys' professional judgment or litigation outcomes. It also restricts contracts that allow unauthorized practice of law and imposes penalties for violations, including statutory damages and attorney's costs. The law aims to protect the integrity of the judicial process by ensuring litigation decisions remain in the hands of licensed attorneys.

California AB2305 regulates corporate legal funders to prevent unauthorized practice of law.

California AB2305 adds regulations to the Business and Professions Code to ensure corporate legal funders do not interfere with litigation decisions. The law defines corporate legal funders and prohibits them from influencing attorneys' professional judgment or litigation outcomes. It also restricts contracts that allow unauthorized practice of law and imposes penalties for violations, including statutory damages and attorney's costs. The law aims to protect the integrity of the judicial process by ensuring litigation decisions remain in the hands of licensed attorneys.