Ethics/Professional Responsibility
Aug. 27, 2026
California bill targets investor control of litigation
AB 2305, backed by plaintiffs' attorneys, heads to Newsom's desk after unanimous votes in both chambers.
Hedge funds, private equity firms and other corporate legal funders would be barred from influencing litigation decisions under a bill headed to Gov. Gavin Newsom.
AB 2305 passed the California Assembly by a 78-0 vote Tuesday, one day after unanimously clearing the Senate. It seeks to reinforce longstanding restrictions on outside financial interests controlling lawyers or litigation decisions.
Those traditional boundaries have come under pressure in recent years as inves...
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