By Khadeeja Safdar

The State Bar of California has opened an investigation into the tactics used by Gloria Allred's law firm in its dealings with clients.

The investigation, prompted by a recent article in The Wall Street Journal, is looking at the issues raised by women who hired the Los Angeles firm to represent them in connection with allegations of sexual misconduct.

Several clients of Allred, Maroko & Goldberg told the Journal that Allred and her law partners ignored their wishes and pressured them to sign settlement agreements, among other complaints.

A State Bar investigator, along with a trial counsel, has requested interviews from people in connection with the article. The investigator is also requesting documents, such as the law firm's retainer agreement.

In a statement, Allred said that her firm has had thousands of satisfied clients over nearly 50 years and that "we have always acted ethically and in accordance with the Rules of Professional Responsibility."

"We are proud to defend our record of protecting, asserting, and vindicating the rights of women and minorities, and we will not be deterred by unjustified accusations which seek to discredit us," she said. "We will not bow down to kings or The Wall Street Journal."

A spokesman for the State Bar said disciplinary investigations are confidential and it cannot comment on whether an investigation is under way.

Ashley Kostial, who retained Allred's firm in 2019, said she spoke this week with the investigator and trial counsel about her experience. She said the investigator asked about the mediation process that led to her signing a nondisclosure agreement in May 2020 and whether Kostial had enough time to review the NDA.

Client complaints or bar investigations aren't usually made public. Clients who have signed NDAs are still allowed to report wrongdoing to government bodies or participate in government investigations. The attorney who is the subject of the complaint is often notified and given the chance to respond.

Many investigations close at that stage. If formal disciplinary charges are filed, and the matter proceeds to the State Bar Court, a judge can impose sanctions ranging from private reproval to suspension or disbarment.

The California State Bar has recently come under scrutiny after it became public that clients had filed more than 200 ethics complaints against celebrity lawyer Thomas Girardi from 1982 until he was disbarred in June 2022. Earlier this month, Girardi was sentenced to more than seven years in prison for embezzling millions from his clients.

Reports released by the State Bar in 2023 found that bar employees received payments and gifts from Girardi that weren't properly disclosed and that relatives of staff members were employed at Girardi's firm. The State Bar has said none of the employees involved with Girardi still work at the organization.

Write to Khadeeja Safdar at khadeeja.safdar@wsj.com

(END) Dow Jones Newswires

June 13, 2025 14:31 ET (18:31 GMT)

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