Arizona Republic Investigation Finds Consumer Harm, Loopholes, and Conflicts of Interest in Arizona’s Legal Regulatory Reform

Above the Law

by Robert Ambrogi

February 24, 2026

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The Arizona Republic’s investigation reveals significant problems with Arizona’s Alternative Business Structures (ABS) program, which allows nonlawyers to own law firms. While the reform was designed to make legal services more affordable and accessible, it has instead become riddled with consumer complaints, financial conflicts of interest, and inadequate oversight. Journalist Laura Gersony highlights how the program, approved by the Arizona Supreme Court in 2021, has attracted profit-focused investors whose firms have mistreated clients, leading to widespread harm. The investigation found that over a dozen licensees have been accused of harming consumers, including targeting vulnerable individuals like those in financial distress. Allegations range from deceptive practices and illegal robo-calling to schemes that “commoditized” accident victims. Additionally, the oversight committee advising the Supreme Court on licensing decisions includes members who profit by counseling firms applying for the program, raising ethical concerns. The ABS program, intended to benefit Arizona residents, has also spilled over into other states. At least half of the licensed firms operate nationally, effectively treating their Arizona licenses as a gateway to expand their practices nationwide. Some firms function like call centers, farming out cases across the country while doing minimal legal work themselves. This creates a system where Arizonans are regulating national legal services with limited capacity for oversight. Despite these issues, only two firms have faced mild discipline, and calls for stronger oversight have been met with resistance from Arizona

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Originally published on Above the Law on 2/24/2026