We dive deep into digital privacy enforcement, the exploding intersection of litigation finance and law firm operations, and how alternative business structures (ABS) and managed service organizations (MSOs) are reshaping legal services. Hosts Brandon Schuh and Nick Hartmann talk with Nick Rowles-Davies, CEO at Lexolent, dissect the FTC's landmark General Motors and OnStar settlement, which finalized in January 2026, revealing how millions of consumers unknowingly had their precise driving data collected, sold, and monetized without consent. The conversation explores the regulatory response, the growing complexity of fee-sharing arrangements in contingency-based litigation, and the philosophical debate between UK and US approaches to nonlawyer investment in law firms. Woven throughout are lighter moments, including a "two truths and a lie" game testing movie trivia knowledge about Back to the Future, Die Hard, and The Breakfast Club.

The episode reflects broader industry shifts like private equity capital flooding into legal services, litigation funders gaining unprecedented control over case strategy, and regulators tightening scrutiny on data-driven business models that exploit consumer blind spots. For legal professionals, insurance industry participants, and policy advocates, this episode maps the emerging terrain of consumer protection in connected vehicles, the ethical fault lines of litigation finance, and the practical mechanics of MSO structures designed to attract venture and private equity backing while skirting prohibitions on nonlawyer ownership.

Key Takeaways:

• GM/OnStar Settlement (January 2026): FTC finalized a major enforcement action banning GM from sharing geolocation and driving behavior data with consumer reporting agencies for five years and requiring explicit opt-in consent for all future data collection, a landmark win for privacy advocates concerned about insurance rate impacts.
• Alternative Business Structures (ABS): Limited to Arizona, Utah, and DC in the US, ABS allows nonlawyers to hold equity in law firms directly. This contrasts sharply with UK structures, where ABS has been legal for over a decade and shows more tolerance for mixed ownership models.
• Managed Service Organizations (MSOs) as Workaround: Since ABS remains rare in most US states, law firms partner with investor-backed MSOs that handle back-office, marketing, and technology functions, siphoning off overhead costs while keeping lawyer-owned firms appearing compliant with Rule 5.4 prohibitions.

Episode Chapters

• 05:30 Privacy & Digital Surveillance

• 08:30 GM/OnStar FTC Settlement Details & Data Monetization

• 10:00 AI Liability & Regulatory Uncertainty Discussion

• 15:00 Settlement Negotiations & Litigation Strategy

• 18:00 Insurance Industry Corporate Raids & Fictional Premise

• 24:30 GM Truck Insurance Quote & Data Sharing Consent

• 27:00 Litigation Prediction & Case Strategy

• 28:00 Administrative Duties & Managed Services Models

• 31:40 Guest Introduction & UK Legal System Background

• 32:00 Alternative Business Structures & Private Equity in Law

• 35:00 Ethical Concerns in MSO Models

• 37:00 Margin Analysis & Contingency Fee Economics

• 41:00 Litigation Finance Benefits & Structural Risks

• 43:00 UK vs US Bar Ethics & Jury Trial Impact

• 45:00 Fee-Sharing Regulations & Risk Assessment

• 49:00 Regulatory Credibility & Litigation Finance Critique

• 55:00 AI Asymmetry in Litigation Strategy

Connect with RiskCellar:

Website: https://www.riskcellar.com/

Guest: Nick Rowles-Davies

Linkedin: https://www.linkedin.com/in/nick-rowles-davies/

Portfolio: http://www.legalfinance.expert/

Substack: https://nickrowlesdavies.substack.com/

Company Website: http://www.lexolent.com/

Brandon Schuh:

Facebook: https://www.facebook.com/profile.php?id=61552710523314

LinkedIn: https://www.linkedin.com/in/brandon-stephen-schuh/

Instagram: https://www.instagram.com/schuhpapa/

Nick Hartmann:

LinkedIn: https://www.linkedin.com/in/nickjhartmann/