Keep your finger on the legal world's pulse

Law firms are increasingly merging to create new identities, but this often leads to cultural clashes. Laura Saklad, a consultant at Intapp, emphasises that “it's in the post-decision, pre-close phase where you have to deal with these things.” As firms like Troutman Pepper and Taft Stettinius & Hollister pursue mergers, they face challenges in integrating diverse cultures and practices. The Fairfax Associates report noted 29 mergers in the first half of the year, highlighting the trend. While some firms, like A&O Shearman, are making cuts to streamline operations post-merger, others are concerned about losing their unique cultures. Lisa Smith from Fairfax Associates warns that firms often use culture as an excuse to avoid mergers, fearing a dilution of their influence. Ronald Shechtman of Pryor Cashman cautions that “mergers come with enormous risk” of altering core values.

 

Bloomberg Tax

The legal profession is witnessing a significant shift with the adoption of generative artificial intelligence (AI) technology, impacting various aspects of law firm operations, particularly staffing. According to the 2024 LexisNexis Investing in Legal Innovation Survey, nearly 38% of senior Am Law 200 lawyers plan to hire technologists to support their Gen AI initiatives. Peter Geovanes, chief innovation and AI officer at McGuireWoods, noted: "During the recruitment process they're asking questions about legal tech and legal AI," highlighting the importance of these tools in attracting top law school graduates. However, firms must also be aware of potential risks associated with Gen AI, including professional liability insurance coverage for AI-assisted work, as stated by Jeff Pfeifer, chief product officer at LexisNexis. The report, Gen AI in Law: Unlocking New Revenues, emphasizes the need for law firms to develop the right skills and mitigate risks to fully leverage Gen AI's potential.

 

Law

U.S. District Judge William Orrick expressed disappointment over the lack of diversity in leadership roles within the Juul multidistrict litigation, revealing that of the 62 plaintiffs' firms involved, none employed Black or Hispanic lawyers. Orrick, who had requested a demographic breakdown of the lawyers, said: "You have to do better." Despite a rise in diverse leadership appointments in mass torts from 7% in 2019 to 16% in 2021, recent data shows a decline to 11% in 2023. Lawyers of color, such as Diandra Debrosse and Ben Crump, are pushing for more representation, but financial barriers and systemic issues persist. Orrick called on firms to prioritize hiring and training nonwhite attorneys, emphasizing that diversity leads to better outcomes for all parties involved. 

 

Law

Kirkland & Ellis, the world’s highest-grossing law firm, has promoted 200 attorneys to partner, marking a slight 2.4% decrease from last year's 205. This is the first year-over-year decline in at least eight years. The most promotions occurred in New York and California, with the majority being salaried, non-equity partners. Despite losing more than a dozen partners to Paul Weiss, the firm saw a 6% increase in profits per equity partner in 2023, driven by steady demand and growth in lateral partner hires in corporate and M&A.  

 

The American Lawyer

On September 30, 2024, McCarter & English announced the addition of 10 lawyers and nine professional staff from Burns & Levinson to its Boston office, effective October 1. This includes eight partners, two special counsel, and an associate, enhancing key practices such as Trust, Estates & Private Clients, Real Estate, and Business Litigation.

 

LawFuel

Gordon Moodie, the former partner at Wachtell Lipton Rosen & Katz, is set to join Debevoise & Plimpton as a partner in its mergers and acquisitions and public company advisory group. After over 18 years at Wachtell, Moodie took a brief hiatus to serve as chief product officer at Harvey, a generative artificial intelligence startup backed by OpenAI. He said: “As the deal market continues to pick up, our clients, especially public companies, have turned to Debevoise for counsel and advice on complex corporate governance matters.” His transition is expected to enhance Debevoise's capabilities in navigating intricate corporate issues.

 

Bloomberg Law

More than 100 individuals are set to file a class-action lawsuit against Sean ‘Diddy’ Combs, alleging sexual abuse and exploitation. The lawsuit follows a federal indictment in September, which charged Combs with sex trafficking, racketeering, and transportation to engage in prostitution. Attorney Tony Buzbee stated: “This is an important matter that we intend to aggressively pursue,” emphasizing a commitment to uncovering all liable parties. The indictment details accusations of Combs coercing women into participating in “freak-offs,” using violence and drugs to maintain secrecy. Combs, who has pleaded not guilty, faces multiple allegations, including a lawsuit from Thalia Graves, who claims she was drugged and assaulted in 2001. Meanwhile, Alexandra Shapiro, a co-founder of litigation boutique Shapiro Arato Bach, and longtime New York trial lawyer Anthony “Tony” Ricco have joined Combs' criminal defense team, according to reports.

 

Bloomberg Law

Los Angeles Times

A federal district judge has allowed the Roofers Local No. 149 Pension Fund's lawsuit against Amgen Inc. to proceed, rejecting the company's motion to dismiss. The fund alleges that Amgen misled investors by delaying the disclosure of a $10.7bn tax bill from the IRS, which was first communicated to the company in 2017 and 2020. The lawsuit claims that Amgen's failure to reveal the full extent of the tax liabilities until two years later harmed investors. As stated in the article, "the company didn't disclose the full extent of the tax bill until two years later."

 

Bloomberg Law

U.S. District Senior Judge James K. Bredar, overseeing the complex litigation stemming from the Baltimore bridge collapse, has outlined a process to resolve the case efficiently. The case involves over 45 claimants, including the U.S. Department of Justice and Maryland Attorney General's Office, following the March 26 cargo ship collision with the Francis Scott Key Bridge that killed six workers. Bredar scheduled an October 29 conference and directed all parties to file a joint status report addressing potential motions and claims. He emphasized timely filings while granting limited leniency for late claims.

 

The National Law Journal

OpenAI Inc. and Microsoft Corp.'s GitHub are set to face the U.S. Court of Appeals for the Ninth Circuit regarding a copyright lawsuit initiated by open-source programmers. The programmers allege that artificial intelligence (AI) coding tool Copilot infringes upon the Digital Millennium Copyright Act by using open-source code for training without proper attribution. Judge Jon S. Tigar has approved the programmers' request for the mid-case appeal, which will determine if OpenAI's actions constitute a violation of copyright law. The lawsuit was first filed in 2022, highlighting ongoing tensions between AI development and copyright protections.

 

Bloomberg Law

The SEC has charged accountant Olayinka Oyebola and his PCAOB-registered firm, Olayinka Oyebola & Co. (Chartered Accountants), with aiding and abetting a massive, multiyear securities fraud. The complaint alleges that Oyebola and his firm deliberately failed to take action after learning that Mmobuosi Odogwu Banye and the Tingo entities created and filed with the SEC fake audit reports with Oyebola's signature. Oyebola allegedly then made material misstatements to the then-auditor of one of the Tingo entities and helped conceal that the audit reports were fake. Oyebola and his firm's assistance enabled the continuation of the multiyear scheme to inflate financial performance metrics and defraud investors. The complaint seeks civil penalties and permanent injunctive relief, which includes permanently barring Oyebola and his firm from practicing as auditors or accountants for U.S. public companies or from assisting in the preparation of financial statements.

 

Accounting Today

A U.S. judge has ruled that the lawsuit filed by Fiona Harvey against Netflix regarding the series Baby Reindeer can proceed. Harvey claims the show inaccurately portrays her as a convicted stalker, despite its assertion that "this is a true story." The series follows Donny Dunn, a bartender, who becomes the target of harassment by a woman named Martha Scott, played by Jessica Gunning. Harvey, who alleges the narrative misrepresents her actions, is seeking $170m (£127m) in damages. Judge Gary Klausner noted that "a reasonable viewer could interpret the statements regarding Martha" as referring to Harvey, allowing her defamation case to advance. The ruling highlights that the series amplifies Harvey's actions, suggesting a "worse degree" of severity.

 

Lawyer Monthly Magazine

The IRS has been found liable for damages due to the unauthorized disclosure of Hunter Biden's confidential tax return information by its employees' attorneys. Judge Rudolph Contreras of the US District Court for the District of Columbia dismissed the IRS' claim of sovereign immunity, stating that Section 6103 of the Internal Revenue Code holds the government accountable for its employees' actions. The judge emphasized that the liability extends from the lawyers acting on behalf of IRS employees Joseph Zeigler and Gary Shipley, who were responsible for the leak.

 

Law & Crime

Bloomberg Tax

Saudi Arabia and the UAE are overhauling IP laws as they shift towards the digital transformation, tourism, and technology sectors. The changes offer law firms new opportunities to advise on IP rights, licensing, and anti-counterfeiting. Firms like Baker Botts and Al-Tamimi & Co are seeing increased demand for IP-related counsel. Recent IP reforms include the UAE joining the Madrid Protocol and Saudi Arabia launching new IP laws. While enforcement remains inconsistent, firms are helping clients navigate challenges, with cases involving sports piracy, counterfeit goods, and copyright disputes.

 

Law

Lawyers in Beirut, including those at Chedid Law Offices, Dentons’ associated firm, are adjusting their working conditions by the hour due to the intensifying conflict between Hezbollah and Israel. Managing partner Elias Chedid said the firm is operating with a mix of office-based and remote work as safety becomes increasingly precarious. With schools closed and bombings targeting areas of the city, lawyers are avoiding travel, balancing family and professional duties, and coping with the psychological strain. Despite the turmoil, Chedid emphasized the importance of resilience, noting: "If you give up, you stop living." 

 

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