California creates $10,000 or treble-damages exposure for investor interference

On September 21, Reuters reported that California enacted AB 2305, restricting business entities from directing or controlling lawyers’ professional judgment on substantial litigation decisions. The law provides a private remedy of $10,000 per violation or three times actual damages, whichever is greater, according to the report. The measure directly affects legal-tech and management-services models that combine outside capital, operational control and legal delivery, making governance rights and escalation processes material product-architecture and transaction terms. Founders and investors should review reserved powers, approval workflows and contractual vetoes before scaling in California or using the state as a template for national operations.