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Reporters took "an in-depth look at the ethical conflicts raised when law firms invest in clients' initial public offerings. The story revealed that one of every three companies that went public in 1999 had allowed the law firm representing it to take an equity interest in the company. Lawyers' holdings in more than 40 percent of the companies were worth more than $1 million each. The practice does not violate lawyer ethics rules, but in the past, the legal profession has frowned on the idea."
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