By: Jordan M. Brown-Burd “Law Clerk” and Michael G. Polis

On May 7, 2026, Attorney General (“AG”) Rob Bonta filed a lawsuit on behalf of the people of California alleging that Aspen Dental Management, Inc. (“ADMI”) violated California Business and Professions Code sections 17200 et seq. and 17500 et seq. The parties have since agreed to a proposed Final Judgment, which now awaits approval from a superior court judge.

Monetary Payments

For alleged violations under Business and Professions Code sections 17206 and 17536, ADMI is required to pay $2 million in civil penalties, to be wired in full to the Office of the California Attorney General no later than 15 days following entry of the Judgment.

The settlement also requires ADMI to pay $300,000 in restitution to affected patients. Beyond the dollar amounts, the agreement specifies a detailed payment timeline and places an affirmative obligation on ADMI to reach out to eligible patients. In cases where patients cannot be located after good-faith efforts, any remaining restitution funds are to be remitted to the Office of the California Attorney General for disbursement to the Victims of Corporate Fraud Compensation Fund.

Injunctive Terms

The heart of this settlement lies in its injunctive relief. Spanning 46 subsections, these terms reflect AG Bonta’s firm line on what dental support organizations can and cannot do when operating in California. The settlement includes unprecedented injunctive terms to protect California consumers and clinical staff, covering everything from clinical independence to advertising transparency. Among the key restrictions, ADMI must not:

• Replace any practice owner with a dentist of its own choosing
• Require practice owners to surrender their dental practices upon termination of their contractual relationship with ADMI
• Own the property used by any affiliated practice
• Practice dentistry, including owning or managing any dental office
• Base service fees on practice revenue, sales, or profits
• Suggest, direct, or encourage any licensed clinician, other than a practice owner,  to sell or increase revenue for any service or product
• Compensate its own employees based on practice sales or revenue
• Pay practice employees incentives tied to sales, revenue, profits, or the promotion of any particular service or product
• Enforce existing contractual provisions that restrict where licensed clinicians may practice or limit their ability to communicate with patients they have treated

ADMI is also required to register with the Dental Board of California as a Dental Group Advertising and Referral Service, provide written fee schedules for products and lab services, and clearly identify the practice owner’s name in all advertisements,  confer annually with the practice owner to negotiate the nature, scope, and service fees provided, among other provisions preserving the autonomy of practice owners over clinical and business decisions.

Compliance Provisions

Both the People and ADMI have mutually agreed to appoint an independent compliance monitor. The monitor will serve in this role for 36 months from the entry of the Judgment, the designated Oversight Period,  with all associated costs to be paid by ADMI.

Three months after entry of the Judgment, the monitor must deliver a status report to the parties. Six months following that initial report, the monitor must complete a second written report reviewing ADMI’s compliance with any remaining outstanding terms. Throughout the Oversight Period, ADMI is required to provide the monitor with reasonable access to all records and employees.

Why This Settlement Matters: The Bigger Picture for Corporate Practice of Dentistry

Prohibition on the corporate practice of dentistry, the legal principle that prohibits non-licensed entities from owning or controlling dental practices, has existed in California law for decades (Bus. & Prof. Code, § 1626). The underlying concern is straightforward: when business interests are permitted to direct clinical decision-making, patient care can suffer. Incentive structures tied to revenue, centralized operational control, and restrictions on clinician autonomy all create an environment where profit can quietly override professional judgment. A trend the state actively targeted on October 6, 2025, when Governor Gavin Newsom signed Senate Bill No. 351 to curb private equity and hedge fund ownership in healthcare. This settlement is significant because it represents California’s most aggressive enforcement of that doctrine to date, and it does so at a moment when private equity investment in dental and medical practices is at an all-time high.

Owned by private equity firms, ADMI describes itself as a dental support organization that provides business management and administrative services to dental offices. The AG’s position, however, is that ADMI crossed the line from support into control, and the breadth of the injunctive terms suggests the office intends to hold that line going forward. For other dental support organizations and management services organizations operating in California, this settlement functions as both a warning and a roadmap. The 46-subsection injunction effectively illustrates the specific practices regulators are watching for: revenue-based fee structures, clinician incentive programs, real property ownership, and other restrictive covenants designed to insert corporate control into the practice of dentistry, precisely what California has moved to prohibit in healthcare. Whether or not a given Dental Service Organization (“DSO”) ‘s operations mirror ADMI’s, this settlement signals that California is no longer content to let organizational structure alone determine the boundaries of corporate practice. What matters now is how control is exercised in practice, and the AG’s office has made clear it is paying close attention.

By: Trevor L. Stapleton

So you finally finished your estate planning and signed your revocable living trust. Phew!! Now you are done. Or are you? Finalizing your trust is a major accomplishment to be applauded for sure. However, your trust is only effective as to assets “in the trust.” You will not avoid probate unless and until the trust obtains legal title to your property. The procedure of transferring title of your assets to your trust is called “funding” the trust and is a vitally important step in implementing your estate plan.

For an asset to be subject to the terms of your trust, you must transfer title to yourselves as trustees. In general, title on all trust assets should be held: “John Doe and Jane Doe, trustees of the John and Jane Doe Trust, dated _ _[date]_ _.”  

Transferring title varies depending on the type of asset, but all transfers will require some documentation or “documents of title” be signed. The following is general guidance about common funding transfers, but there are nuances and variations so you should consult with your advisors to be sure the transfers are completed correctly:

            1. Real property. To transfer your residence and other real property to the trust, you must execute a grant deed to the trustee(s) of the trust and then record the deed at the county recorder’s office (along with a Preliminary Change of Ownership Report). Again, the “grantee” on the deed will be in the form of “John Doe and Jane Doe, trustees of the John and Jane Doe Trust, dated _ _[date]_ _.” 

Exception: If you purchase a home under the Cal-Vet program you should consult with the Department of Veterans Affairs for the proper method of transferring your contract.

        2. Financial institution accounts. These accounts are normally transferred by changing the name of the account owner on the signature card or other “contract” between you and the bank, broker, etc., to the trustee of the trust. Financial institutions should be accustomed to making these transfers and generally have their own set of forms or documents to complete. Often, the institution will want a “certification of trust” and may ask that you complete their version. If not, your attorney can assist you with preparing one. It is highly recommended to visit the institution in person with a copy of your trust agreement than trying to do it over the telephone or on-line.

            3. Stocks and bonds. If you hold your shares through a brokerage firm, you need change the title on the brokerage accounts. Your stockbroker may request a copy of the signed trust instrument for examination by his or her firm’s legal department. Again, this can be satisfied by a Certification of Trust which your attorney can help prepare for you as needed.

            If you have physical stock/share certificates in your name, those certificates will have to be transferred which normally requires surrendering the certificates and having new certificates issued in the name of the trust. This process can be complicated and may involve working through a “transfer agent” so you should ask your advisors to assist you.

        4. Automobiles. Generally, it is not necessary to transfer automobiles to the trust provided that you have given someone a durable power of attorney, which will enable them to sell the vehicle and transfer the proceeds to the trust if you become incapacitated or if you hold title with your intended beneficiaries as joint tenants. Also note that California law provides a procedure for an heir or other successor to the decedent’s property to transfer vehicle titles if the decedent has no other probate property and no probate proceeding is being conducted. The DMV has a form for certifying entitlement to transfers, titled “Affidavit for Transfer Without Probate; Titled Vehicle or Vessels Only.” 

        5. Other personal property. Since you generally do not have “title” documents for items such as your furniture, clothing, jewelry, etc, it is advisable to sign a general assignment to clearly indicate that you intend the trust to also hold all your tangible personal property.

        6. Interests in businesses, including partnerships and small corporations. Transfers of interests in businesses will require an attorney’s assistance. Businesses generally require a variety of permits and licenses, and it is necessary that they be reviewed in detail before making the transfer. In addition, most business are held through an entity which may have owner agreements or other governing documents that need to be considered and complied with.

In addition to your current assets, moving forward you should take title to assets in your trust’s name as you acquire them. If you take title to an asset in your own name, that asset will not be a trust asset, undermining your planning.

If you have questions or need assistance with funding your trust, you should consult with experienced estate planning professional such as the Estate Planning Group at Wilke Fleury.

Wilke Fleury is pleased to announce that 18 of the firm’s attorneys have been selected for inclusion on the 2026 Northern California Super Lawyers and Rising Stars lists.

The annual Super Lawyers and Rising Stars selections recognize attorneys across a wide range of practice areas. This year’s honorees reflect the depth of Wilke Fleury’s litigation, business, healthcare, employment, bankruptcy, appellate, real estate, construction, and estate planning practices.

2026 Northern California Super Lawyers

• Adriana C. Cervantes – Personal Injury Medical Malpractice: Defense
• Daniel L. Egan – Bankruptcy: Business
• David A. Frenznick – Construction Litigation
• George A. Guthrie – Real Estate
• Neal C. Lutterman – Personal Injury Medical Malpractice: Defense
• Stephen K. Marmaduke – Business/Corporate
• Suzanne M. Nicholson – Appellate
• Michael G. Polis – Health Care
• Matthew W. Powell – Business Litigation
• Trevor Stapleton – Estate & Probate
• Steven J. Williamson – Business Litigation

2026 Northern California Rising Stars

• Mena Arsalai – Business/Corporate
• Kathryne Baldwin – Civil Litigation: Defense
• Larissa C. Celaya – Employment & Labor
• Aaron Claxton – Health Care
• Jason G. Eldred – Bankruptcy: Business
• Jizell Lopez – Employment & Labor
• Jose L. Parra – Civil Litigation: Defense

Wilke Fleury congratulates each of the attorneys recognized this year!