Private Equity is Ruining Law Firms, Too

private equity is ruining law firms

Private equity ruins everything.

Healthcare. Housing. Nursing homes. And now…law firms.

I asked ChatGPT what personal injury firms would look like if private equity ran them. Here’s what it said:

  • Clients treated like numbers
  • Volume over value
  • Quick settlements to hit revenue targets
  • Automation over advocacy
  • Decisions driven by dashboards, not judgment
  • Lawyers juggling 300+ cases
  • Built to sell, not to serve

It nailed it. And that’s exactly why we should all be alarmed.

The movement to allow non-lawyer ownership of law firms is picking up steam. Arizona and Utah allow it. (I talk about this more with Matt Dolman on Episode 18 of the Championing Justice podcast.)

And if we don’t stop it, we’ll hand over one of the last client-centered professions to Wall Street.

I’m reading Plunder right now. It’s a book about how private equity is gutting America from the inside. If you want a preview of what happens when you let investors control essential services, it’s all in there.

Law is a profession. It’s not a product. It’s not a portfolio. It’s not a vehicle for a liquidity event.

And the irony of all this is that everything that trial lawyers are supposed to stand for is the opposite of what private equity stands for.

What do you think? Join the conversation with me on LinkedIn.

About the Author

Darl Champion is an award-winning personal injury lawyer serving the greater Metro Atlanta area. He is passionate about ensuring his clients are fully compensated when they are harmed by someone’s negligence. Learn more about Darl here.