Keep your finger on the legal world's pulse

A decade ago, there were over 5,000 aspiring attorneys enrolled in six for-profit law schools in the U.S. However, due to waning demand and accreditation problems, that figure has now dropped to about 900. Half of the for-profit law schools have closed, one has converted to nonprofit status, and another is seeking to become a nonprofit. This would leave only one for-profit law school in the country. Charleston School of Law is currently requesting approval from the American Bar Association (ABA) to convert to a nonprofit. Once approved by the ABA, the school will seek similar approvals from the U.S. Department of Education and the South Carolina Commission on Higher Education. The primary benefit of becoming a nonprofit is the ability to accept charitable gifts and donations. For-profit law schools have been heavily impacted by the decline in law school enrollment and have faced criticism for high tuition and poor employment outcomes. The InfiLaw schools, in particular, have faced accreditation challenges and have closed as a result. InfiLaw nearly acquired Charleston School of Law in 2015 but local attorney Ed Bell bought a stake in the school to prevent its closure. The school is now being donated to the nonprofit Charleston School of Law Foundation.

 

Reuters

ZeroRisk Cases, Inc. is raising awareness about the increase in fake leads, lead fraud, and TCPA lawsuits that are affecting law firms. The surge in these issues is driven by hedge fund money flooding the legal market. ZeroRisk Cases is committed to providing innovative solutions to combat these challenges. Ed Lott, President and Managing Partner of ZeroRisk Cases, emphasizes the importance of trust and the need to eliminate lead fraud. The company has developed the ZeroRisk Compliance Program to minimize lead fraud and fake leads. ZeroRisk Cases aims to deliver high-quality litigants to law firms and restore public faith in the legal profession.

 

Law

Freshfields Bruckhaus Deringer's aggressive expansion in the U.S. is causing a power shift within the firm, with U.S. partners gaining more influence. The firm's strategy to become a top player in the U.S. legal market has led to the consolidation of power in New York and Silicon Valley, with partners such as Ethan Klingsberg, Damien Zoubek, and Jenny Hochenberg taking on key roles. The U.S. expansion has been successful, with the firm's revenue there growing 29% in the last financial year. However, this focus on the U.S. market has raised concerns among non-U.S. partners, who feel left behind. Despite disagreements, the firm's U.S. strategy is seen as a way to generate better engagements worldwide. Freshfields declined to comment on the matter.

 

Law

K&L Gates has settled a malpractice suit with Quantum Materials Corp. The settlement terms are confidential. The lawsuit stems from a payments-related dispute between Quantum and lenders SBI Investments LLC and L2Capital LLC. Quantum claimed that it signed up K&L Gates as its counsel, only to later learn that the firm was representing the lenders. In an amended petition, Michael Minns, a lawyer for Quantum, criticized K&L Gates for demanding payment from Quantum for work done for the lenders. The case had previously been ruled against K&L Gates by a Texas Court of Appeals.

 

Bloomberg Law

Avi Perry, the former chief of the market integrity and major frauds unit at the Department of Justice, has joined Quinn Emanuel Urquhart & Sullivan as a partner. Perry will co-chair the securities litigation and commodities/derivatives groups and will also be a member of the investigations, government enforcement & white collar criminal defense group. During his time at the DOJ, Perry oversaw market-rigging cases against traders from global banks such as JPMorgan Chase & Co. Quinn Emanuel has been actively recruiting talent from government agencies to meet the sustained client demand in white-collar, antitrust, and investigations practices.

 

Bloomberg Law

Law

A federal appeals court has questioned why former U.S. president Donald Trump waited over three years to claim absolute immunity from a defamation lawsuit filed by writer E. Jean Carroll. Trump's lawyer argued that presidential immunity is an "absolute and nonwaivable protection." Carroll sued Trump in 2019 over his denial of raping her. The court is currently considering Trump's appeals against pivotal rulings by a U.S. District Judge. Trump is appealing the judge's refusal to dismiss Carroll's lawsuit and the dismissal of some of his defenses and a defamation counterclaim. The trial is scheduled for January 2024, with Carroll seeking at least $10m in damages.

 

U.S. News

Special counsel David Weiss is slated to appear before investigators with the House Judiciary Committee on November 7th, to answer questions about his ongoing investigation into Hunter Biden. The meeting follows testimony from two IRS whistleblowers who complained the criminal investigation was slow-walked under Mr. Weiss’s leadership, showing preferential treatment to the president’s son - allegations that he has rejected.

 

The Hill

Many U.S. states have objected to JPMorgan Chase's $290m class-action settlement with Jeffrey Epstein's accusers, stating that the agreement could limit their ability to seek compensation for sexual abuse victims. The attorneys general of 16 states and Washington, D.C. have complained about settlement language that prevents any sovereign or government from seeking damages arising from sex trafficking by Epstein and his associates. They argue that this language would deter them from seeking damages for sex trafficking victims under the federal Trafficking Victims Protection Act. JPMorgan has not yet responded to the objections. The settlement requires approval from U.S. District Judge Jed Rakoff, with a hearing scheduled for November 9th.

 

Reuters

Sam Bankman-Fried's lawyers have complained that prosecutors at his fraud trial are portraying him as a "cartoon of a villain." Defense lawyers have avoided challenging negative depictions of Bankman-Fried by his former colleagues, which could make jurors more willing to convict him. Federal prosecutors have accused Bankman-Fried of looting billions of dollars to prop up his trading firm and donate to political campaigns. Bankman-Fried has pleaded not guilty to fraud and conspiracy charges. Defense lawyers may present a competing narrative when they present their case. Bankman-Fried's best chance at establishing a positive impression may be to take the witness stand himself. The prosecution's witnesses have contradicted Bankman-Fried's reputation as a responsible actor in the crypto space. Defense experts suggest that challenging the witnesses' testimony may not be helpful. The trial continues.

 

 

Reuters

Biopharmaceutical company Vyripharm is facing multiple lawsuits in Texas, including one from McGuireWoods, over unpaid bills and missing paychecks. The law firm alleges that Vyripharm breached its legal services contract and owes over $665,300 in fees. This is the latest in a series of cases filed against Vyripharm since June, with plaintiffs accusing the company of delinquent payments. In addition to the lawsuits, Vyripharm is also facing a lawsuit from a landlord seeking over $393,500 in allegedly unpaid rent. Vyripharm, which focuses on the integration of traditional and alternative medicine, has not yet responded to the lawsuits. The company's work involves the medical cannabis industry, and it has previously presented at a Food and Drug Administration hearing on cannabis products. The case is ongoing in the District Court of Harris County.

 

Reuters

Drugmaker Indivior has agreed to pay $385m to settle a lawsuit brought by direct purchasers over allegations of illegally suppressing generic competition for its opioid addiction treatment Suboxone. This settlement comes after Indivior previously agreed to pay $102.5m to settle a lawsuit by U.S. states. The settlement with the direct purchasers marks the end of the multi-district litigation relating to Suboxone. Indivior will take a charge of $228m in the third quarter, which will be excluded from adjusted earnings.

 

Reuters