Private Equity Invasion into Law Firms

Historically, only licensed attorneys could own law firms, preventing conflicts of interest and high-pressure profit motives. However, in states such as Arizona and Nevada, private equity firms can now become part-owners of legal practices. That, Scott O’Sullivan explains, is introducing a “money, money, money” mindset that pressures attorneys to churn out fast settlements.

“Private equity is flooding the market with capital and making these firms…pressure, pressure, pressure, settle, settle, settle so that they can keep feeding the beast,” he says. “They see the possibility of higher margins in personal injury, and that encourages bad behavior. The lawyers have quotas every month. … They’ll just lowball cases at the end of the month to meet their numbers.”

The implications for injured clients can be significant. Scott notes that settlement offers end up lower than a case is truly worth, leaving victims undercompensated in order to meet private equity’s goals.

Settlement Quotas: When Lawyers Become Salespeople

Alongside the infusion of private equity comes a sales-based quota system that sounds more reminiscent of a retail environment than a law office. Some firms, Scott explains, demand attorneys settle “X number of cases per month.” The result?

1. Lower Settlements – Lawyers facing strict monthly targets may accept offers below fair value just to meet quotas.
2. High Turnover – With attorneys dealing in bulk rather than on a personal basis, firms cycle through staff quickly as they buckle due to the enormous caseload. This means less experienced staff and higher margins for error.
3. Clients as Numbers – Rather than receiving careful, individualized representation, clients become part of a conveyor belt of settlements.

“I don’t take in thousands of clients a year,” Scott says of his own practice. “We know who you are and we know what’s going on. We work to get as much as we can out of each case so that clients have a chance at a decent recovery.”

New Laws that Protect Motorcyclists and Drivers Alike

Scott’s dedication to clients goes beyond the courtroom; he also volunteers his time to educate lawmakers and support sensible road-safety legislation. Two recent laws are particularly noteworthy:

1. Colorado’s Motorcycle Lane Filtering Law

Effective as of August 2023, this law allows motorcyclists to carefully move between cars in very limited stopped-traffic situations — often called “lane filtering.” The goal is to reduce the risk of rear-end collisions that often prove catastrophic for motorcyclists.

“We have cases that would have been avoided if people would have filtered legally,” he explains, recounting a motorcycle client who was struck from behind while stopped at a light. “Had he filtered to the front, the crash wouldn’t have happened at all.”

Still, the law has prompted some road rage incidents by drivers unfamiliar or upset with the concept. Scott stresses that lane filtering must be done lawfully and responsibly, and that more public education is needed to ensure all road users understand how it works—and why it saves lives.

2. Colorado’s Hands-Free (Distracted Driving) Bill

The Hands-Free bill took effect in January 2025. This new legislation aims to curb distracted driving by prohibiting the use of handheld devices behind the wheel. Scott worked with advocacy groups and lawmakers, offering expert testimony in support of the law.

“If it does what it does in other states… it will save 10% of the fatalities on the road. That’s 50 or 60 people who’ll be alive next year,” he notes, pointing out that saving lives, not increasing legal cases, is his primary goal.

The Value (and Risk) of Riding with Cameras

In an age where evidence is often captured on video, Scott recommends motorcyclists and drivers use dash cams or GoPros to document potential accidents, but with caution.

1. Evidence of Fault – Video can protect you if an accident was someone else’s fault.
2. Careful What You Wish For – Footage showing reckless driving could undermine your claim.

He mentions several clients who have been grateful for camera footage confirming their innocence—while acknowledging that in rare cases, past footage can lead to additional scrutiny.

Road Rage on the Rise?

Whether due to crowded highways, stress, or a cultural shift, Scott says road rage incidents against motorcyclists are becoming more common. From a motorist running a motorcycle rider off the road for lane filtering to drivers chasing other drivers down, the consequences can be dire.

“People have lost their minds,” he warns. “I tell every rider and driver: assume whoever is around you could snap at any moment. It’s just not worth it to engage.”

Keeping Integrity at the Center of the Practice

Despite constant offers from private equity firms, Scott emphatically refuses to sell, believing it would compromise the quality and integrity of his representation.

“I do well by my clients, which means I do well,” he explains. “I don’t need more, more, more. I’m focused on working for people—not quotas. That’s the legacy I want to leave behind.”

In an industry now riddled with quick settlements, big advertising budgets, and private equity deals, Scott O’Sullivan stands out for insisting on a personal, ethical approach. He is a reminder that at its best, personal injury law is a vocation about protecting individuals and helping them recover from life-changing events—and not simply about feeding a money machine.