Suits Spur Debate On Outside Investment In Law Firms

Law360, New York (May 19, 2011, 9:51 PM EDT) -- Three lawsuits filed Wednesday challenging rules in New York, Connecticut and New Jersey barring nonattorneys from owning a stake in law firms have some experts wondering if the decades-old wall between legal practitioners and outside investment is finally ready to fall.

In three proposed class actions, plaintiffs' firm Jacoby & Meyers LLP argues that the “antiquated” state-based rules — which prohibit attorneys from practicing in corporations where nonattorneys own an interest — are not only unconstitutional but also hamper competition and restrict the public's access to...
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