Laura Askinazi

South Carolina is the latest state to push back against Alternative Business Structures (ABS). On March 13, 2026, and following California's enactment of Assembly Bill (AB) 931 in October 2025 – which largely froze California lawyers' ability to experiment with certain ABS arrangements for the next four years – South Carolina's Ethics Advisory Committee (Committee) has now issued Ethics Advisory Opinion 25-02 (Opinion).

California Assembly Bill (AB) 2305 would establish one of the most comprehensive statutory frameworks in the nation restricting corporate investor involvement in litigation practices, with broad definitions covering ownership, financing and management arrangements. The bill would prohibit corporate investors from influencing litigation decisions, attorney professional judgment or client representation and void contractual provisions that permit investor control or limit reporting of interference.