New York ban on non-lawyer equity investment in law firms is upheld

The US District Court for the Southern District of New York has said that a challenge to the existing ban is 'entirely without merit'.

Law firm Jacoby & Meyers had challenged the existing ban through a constitutional challenge. But Judge Lewis Kaplan held that the legal barriers in New York do not violate various rights including those of free speech and freedom of association. The judge produced a 40-page decision in which he described some of the arguments made as being 'frivolous'.

Appeal

But the firm is planning to appeal. Todd S Garber, one of the lawyers acting for Jacoby, said: 'While we are disappointed with the decision, we look forward to the Second Circuit’s review of the District Court’s ruling.' Source: Bloomberg

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