Arizona is one of only two states in the country that allows nonlawyers — including investors and marketing companies — to own law firms. Supporters of this policy, created by the Arizona Supreme Court, say it was designed to lower costs and expand access to legal services.

Instead, an investigation by the Arizona Republic found that weak oversight has allowed court-licensed firms to operate nationwide with little scrutiny, even as prosecutors and consumers accused some of deceptive, predatory, or outright fraudulent conduct.

An investigation revealed that lapses in oversight permitted court-licensed personal-injury firms to function for extended periods, occasionally even years, before significant consumer-protection issues were uncovered. 

In a recent legal filing, Alabama prosecutors wrote about a network tied to an Arizona-licensed personal injury firm:

The defendants built a “deceptive scheme” that “commoditized” accident victims, prosecutors wrote in a legal filing, charging victims as much as $800 per hour for treatment. Victims, prosecutors wrote, were “scammed.”

“Unbeknownst to the accident victims, the treatment was designed, not for their own health and well-being, but to maximize the settlement value of their accident in pre-suit settlement negotiations,” the lawsuit reads.

While prosecutors in Alabama investigated those allegations, the Arizona committee that had granted the firm its license remained silent for months, according to the Arizona Republic. 

The investigation highlighted Legal Help Partners, a court-licensed personal-injury firm disciplined in 2024 for conduct dating back more than two years. The company advertised itself as a “boutique law firm” led by an “attorney with 20+ years of experience,” but was reprimanded for failing to disclose that it shared its caseloads with local firms nationwide. 

The presiding disciplinary judge said the omission posed “potential harm” to the public. The Arizona Bar noted that the firm’s sole attorney had zero experience in personal-injury law and was living in Georgia.

Arizona’s legal licensing initiative aimed to enhance access to justice, rather than putting consumers at risk with hidden dangers and slow oversight. It is crucial for state regulators to promptly assess licensed organizations for transparency, mandate clear disclosures regarding ownership and case-sharing agreements, and take swift action when credible allegations arise. Advancements in legal services should not compromise fundamental consumer protections.