The use of management service organizations (MSOs) in the law firm space is a new and expanding trend. While uncertainties whether MSOs comply with legal ethical rules remain, with only one decision from the Texas Commission on Professional Ethics touching on the issue so far, continued use of MSOs in law firm transactions is expected.
The litigation funder, Burford Capital, expressed its intention to purchase minority stakes in U.S. law firms. And, more recently, AmLaw 50 firm McDermott Will & Schulte has announced that it is in preliminary discussions regarding a potential restructuring in which it would sell a portion of its operations to a third-party investor.
Crowell’s Paul Haskel and Paul Pollock recently published an article in Bloomberg Law exploring these topics and the legal and regulatory hurdles faced by non-professionals seeking ownership and operation of MSOs.
Click here to read the article.