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Second Circuit Upholds Ban on Private Investment In Law Firms
A federal appeals court rejected an attempt to loosen restrictions on private investment in the legal industry, dismissing arguments that ethics rules on so-called “fee splitting” impinge on lawyers' First Amendment rights. Jacoby & Meyers v. The Presiding Justices, No. 15-2608 (2d Cir March 24, 2017).
The decision, which affirms a 2015 district court ruling, is a blow to Los Angeles-based personal injury firm Jacoby & Meyers, which has fought a nearly six-year legal battle against the prohibition on non-lawyers investing in law firms and sharing in legal fees.
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