Ethics/Professional Responsibility
Sep. 21, 2026
New law restricts corporate funder influence over litigation decisions
AB 2305 draws a bright line between funding litigation and controlling it, allowing certain financial arrangements while barring corporate funders from influencing lawyers' professional judgment, litigation strategy, client selection or settlement decisions.
California Assembly Bill (AB) 2305, now signed into law, marks further legislative movement in the regulation of nonlawyer financial involvement in litigation practices. The law emphasizes a clear boundary: capital may support a litigation practice, but a corporate funder may not influence or control an attorney's independent professional judgment.
The law follows California's enactment of AB 931 in October 2025, which restricted California attorneys from directly or indire...
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