In 2021, Arizona changed its rules to let non-lawyers co-own law firms, many of which are highly profitable: They collectively made an estimated $320 billion in the US last year. Today, 47 states — all but Arizona, Utah, and Washington — ban anyone but lawyers from owning law firms. Some of the firms Arizona has approved have said they plan to advertise nationwide, and refer cases to other law firms that will actually do the work. Pre-settlement funding, which is one of the riskier kinds of loan for plaintiffs' law firms, often has interest rates of 12 to 20 percent, Ziser said. The UK has allowed outside investment in law firms since 2007 without major scandal, he said, but it also takes a loser-pays approach to lawsuits that can cut down on frivolous claims.

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