ABA-499
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| As additional states "permit business structures that allow nonlawyer ownership of law firms and the sharing of legal fees with nonlawyers," lawyers "may acquire a ‘passive' investment interest" in what are called alternative business structures, as long as: (1) the passive investment "does not include scenarios in which the investing lawyer practices law through the ABS [alternative business structure], manages or holds a position of corporate or managerial authority in the ABS, or is otherwise involved in the daily operations of the ABS"; and (2) "the investing lawyer does not have access to information protected by [ABA] Model Rule 1.6 without the ABS client's informed consent." Although a law firm's lawyer's personal interest resulting from her investment in an ABS is not automatically imputed to her colleagues under ABA Model Rule 1.10, lawyers must analyze a possible ABA Model Rule 1.7(a)(2) "material limitation" conflict. |