Is LAW (CS Disco, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LAW is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in LAW.

CS Disco, Inc. is a cloud-native legal technology company that provides AI-powered solutions for law firms and corporate legal departments. Its flagship products, DISCO Ediscovery and DISCO Review, automate the arduous processes of legal document collection, review, and case management. For Muslim investors, CS Disco currently holds a Doubtful shariah compliance status based on AAOIFI standards. While its core software business is halal and it easily passes both the debt and interest income screens, it fails the liquidity test due to excessive cash and securities relative to its market capitalization. From an Islamic finance perspective, the company boasts an exceptionally clean balance sheet with a 0.0% debt-to-market cap ratio and zero interest income. However, its cash and interest-bearing securities sit at 39.8% of its market cap, meaning a significant portion of the company's valuation is tied to liquid assets rather than operating business value. Since the compliance failure is tied to market capitalization and cash reserves rather than haram business activities, investors should monitor the stock closely. If CS Disco's stock price appreciates or it deploys its cash reserves for growth, it could drop below the 33% threshold and become fully shariah-compliant. CS Disco, Inc. operates in the Technology sector under the Software - Application industry and is headquartered in Austin, TX, US. The company is led by CEO Eric Friedrichsen and employs approximately 561 people.

LAW was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LAW passed 3 of these 4 screens.

LAW was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.