CA AB2305

Prohibits corporate investors (private equity groups, hedge funds, investment firms) from interfering with or controlling substantive litigation decisions made by licensed attorneys or litigants in California

Corporate investors cannot influence client selection, scope of representation, fee arrangements, legal strategy, settlement decisions, evidence presentation, or discovery conduct

Voids any contract provisions that would permit corporate interference with litigation, including clauses that restrict attorneys from withdrawing due to interference or impose penalties for reporting corporate influence

Violations constitute grounds for State Bar discipline and impose statutory damages of $10,000 per violation or three times actual damages (whichever is greater), plus attorney's fees and costs

Applies regardless of the law firm's corporate structure (partnership, professional corporation, or LLC)