Kabateck LLP managing partner Shant Karnikian was featured in the Inland Empire Law Weekly discussing two new California laws signed by Governor Gavin Newsom in October 2025 that protect consumers from misleading legal advertising and unethical practices.
Senate Bill 37, signed October 11, allows Californians misled by unethical legal advertising to sue offending law firms directly—a significant change from previous enforcement that relied solely on the State Bar. The law explicitly prohibits misleading claims such as “billion dollar lawsuits,” promises of quick settlements or immediate cash, and false awards or recognitions.
Assembly Bill 931, signed October 10, prohibits non-attorney ownership of law firms and bans attorneys from sharing legal fees with people who recommend their services or out-of-state firms owned by non-attorneys.
Karnikian emphasized how misleading advertising harms both clients and the legal profession. “(Attorneys that run misleading advertisements) might be harming the clients that they represent by misleading how much money they can get for them, and they’re doing damage to the hundreds of thousands of California lawyers who are doing right for their clients,” he said.
He pointed to billboards throughout Los Angeles—particularly after the Eaton Fire—declaring “billion dollar lawsuits” against Southern California Edison as prime examples. “Anybody can slap a number in a lawsuit and say, ‘I want a billion dollars’…It’s misleading. Someone sees that and they think, ‘They won a billion dollars off of that case!'”
On non-attorney ownership, Karnikian warned that non-lawyers might prioritize finances over clients by pressuring quick settlements. “Both of these sets of rules are valuable protections and they’re steps in the right direction. There’s no good from non-lawyers owning law firms.”
Read the full article in the Inland Empire Law Weekly (subscription required).