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

California AB2305 adds regulations to the Business and Professions Code to prevent corporate legal funders from improperly influencing litigation decisions. It prohibits corporate legal funders from interfering with attorneys' professional judgment, controlling litigation strategies, or restricting client or attorney freedom to withdraw from representation. The bill defines "corporate legal funder" and "nonrecourse litigation finance," ensuring that funding does not compromise attorney independence. Violations are subject to financial penalties and disciplinary actions by the State Bar.

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

California AB2305 adds regulations to the Business and Professions Code to prevent corporate legal funders from improperly influencing litigation decisions. It prohibits corporate legal funders from interfering with attorneys' professional judgment, controlling litigation strategies, or restricting client or attorney freedom to withdraw from representation. The bill defines "corporate legal funder" and "nonrecourse litigation finance," ensuring that funding does not compromise attorney independence. Violations are subject to financial penalties and disciplinary actions by the State Bar.