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IL HB5487
Bill
Status
Introduced
2/6/2026
Primary Sponsor
Jennifer Gong-Gershowitz
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AI Summary
- Amends the Illinois Attorney Act to prohibit private equity groups, hedge funds, and their controlled entities (including management services organizations) from interfering with attorneys' professional judgment, controlling client records, or making hiring/firing decisions based on competency standards.
- Bars private equity and hedge fund entities from charging fees to law firms that are based directly or indirectly on the firm's fees, revenues, or profits.
- Prohibits contracts between law firms and private equity/hedge fund entities from including non-compete clauses or restrictions on attorneys' ability to comment on quality of services or ethical concerns.
- Restricts Illinois-licensed attorneys from sharing legal fees with out-of-state alternative business structures unless they are also licensed in that state and the fees relate to legal services performed there.
- Violations may result in attorney discipline plus statutory damages of $10,000 per violation or three times actual damages (whichever is greater), attorney's fees, costs, and injunctive relief.
Legislative Description
LAW FIRM OWNERSHIP
Last Action
Assigned to Judiciary - Civil Committee
3/4/2026
Committee Referrals
Judiciary - Civil3/4/2026
Rules2/13/2026
Full Bill Text
No bill text available