California Enacts Law Limiting Fee-Sharing with Out-of-State Alternative Business Structures in Legal Industry
California Governor Gavin Newsom has signed Assembly Bill 931 (AB 931) into law, introducing significant restrictions on fee-sharing arrangements between California attorneys and out-of-state law firms owned by non-lawyers, commonly referred to as Alternative Business Structures (ABS). This legislation, effective January 1, 2026, prohibits California lawyers and firms from sharing contingency fees with ABS entities…