California draws a harder line around ABS fee-sharing
Wilson Elser’s analysis of California’s new ABS law says that, effective January 1, 2026, California lawyers and firms are barred from directly or indirectly sharing legal fees with out-of-state alternative business structures, subject to limited exceptions.
BY FRONTIER DESK · MAY 18, 2026 · 1 MIN READ
Wilson Elser’s analysis of California’s new ABS law says that, effective January 1, 2026, California lawyers and firms are barred from directly or indirectly sharing legal fees with out-of-state alternative business structures, subject to limited exceptions. The analysis flags penalties of $10,000 per violation or three times the consumer’s damages, plus fees, costs and potential discipline. The contrast with Arizona and Utah remains important: ABS liberalisation is not moving in one direction across the United States, and investor-backed new-law models now need jurisdiction-by-jurisdiction structure discipline.