Alternative business structures

Alternative business structure LegalZoom Legal Services is being sued in the United States as part of a claim that its American parent company is engaged in the unauthorised practice of law, Legal Futures can reveal. California-based LegalForce claims LegalZoom is using ownership of the ABS as a way to offer legal advice in the US.

The UK has its first law firm owned by a hedge fund after Slater & Gordon’s UK operation completed its separation from the Australian parent. The newly independent business has appointed a chief executive in the shape of the former vice-chairman of an American technology company.

A boutique London sports and entertainment law practice has converted to an alternative business structure just three months after launching itself, with the aim of being “nimble” in future. It counts the likes of Usain Bolt, Anthony Joshua and Chris Froome among its clients.

Premier League footballers including former Manchester United and England striker Andrew Cole are set to be among high-profile sporting clients of a law firm that has taken investment from a sports and media group after becoming an alternative business structure.

National law firm Simpson Millar is set to make at least 20% of its workforce redundant as part of a restructuring that follows its listed parent company going into administration earlier this year. The firm said the changes were designed “to put in place a sustainable cost base following substantial under-investment under the ownership of Fairpoint Group PLC”.

A law firm has relaunched itself as a multi-disciplinary alternative business structure, offering corporate clients legal, accountancy, and business advisory services, with human resources advice set to follow. Its head said being able to offer SMEs more than legal services was a “unique selling point” in a crowded legal marketplace.

Keystone Law made its debut on the London Stock Exchange yesterday and saw its share price jump 20% in the first day of trading. Meanwhile, the UK’s first listed law firm, Gateley, issued a strong trading update, with revenues up 10% over the first six months of the current financial year.

The co-founder of the only wholly owned trade union alternative business structure has described the legal sector as not concerned with the general public’s access to justice but “access to profit”. He said the legal industry still “seems to be obsessed by debt, profit and finance”, with hardly a thought for the client.

A third of the top 300 UK law firms will have disappeared by 2022, a law firm finance expert predicted at yesterday’s Legal Futures Innovation Conference. John Llewellyn-Lloyd, who advised London firm Gordon Dadds on its recent flotation, said that by then there would also be at least 10 listed law firms, with a combined capitalisation of £2bn.

Pioneering alternative business structure (ABS) rradar has become the first law firm to be selected for the London Stock Exchange ELITE programme, which helps innovative new companies grow. Gary Gallen, chief executive of rradar, told Legal Futures that listing was “certainly something we’re looking at”, and being part of the programme would give the firm “all the tools and skills you need to do that effectively”.