Keep your finger on the legal world's pulse

The American Bar Association (ABA) has hailed the 2020s as "The Decade of the Female Lawyer" in a new report, highlighting significant strides in gender diversity within the legal profession. The report details an increase in female representation in senior legal roles, including equity partners and general counsels, as firms and corporations focus on gender equity initiatives. However, challenges remain, such as persistent gender pay gaps and a lack of representation in certain practice areas. "While progress is commendable, there is still much work to be done to achieve true equality," the ABA said. The report underscores the importance of mentorship programs and flexible work arrangements in fostering continued growth for women in the legal field.

 

Reuters

Law firms have experienced remarkable double-digit profit growth in 2024, driven by increased billing rates and higher demand in transactional and litigation practices, according to an analysis by The American Lawyer. Firms have raised billing rates by as much as 8% on average, contributing significantly to revenue increases despite economic challenges. "We’re still seeing demand rise in key areas like litigation and M&A," said Chris O'Brien, managing director at Citi Private Bank's Law Firm Group. However, concerns remain about sustaining this momentum as expenses, including associate compensation and overhead costs, continue to rise. Firms are focusing on strategic expense management and leveraging technology to maintain profitability.

 

The American Lawyer

Artificial intelligence (AI) is emerging as a pivotal tool for startups in the legal industry, enabling new law firms to compete effectively against larger, established players. By automating time-intensive tasks like legal research, document drafting, and case analysis, AI reduces operational costs and levels the playing field. Craig Peters, co-founder of a startup legal practice, explained: "AI allows us to handle more cases with fewer resources, giving clients the responsiveness and affordability they demand." Beyond efficiency, AI tools provide insights into case trends and strategies, empowering firms to deliver tailored legal services. As firms embrace AI, they face challenges like upfront costs and the need to maintain a human touch in client interactions, but its long-term potential is reshaping the industry.

 

Law360

Clifford Chance is expanding its team by hiring private equity partner Vince Ferrito from rival law firm O'Melveny & Myers in New York. The move follows the recent recruitment of two other partners from O'Melveny, David Schultz and Matthew Hinker. The firm aims to double its U.S. revenue, having already increased it by 28% in the 2023 fiscal year.

 

Bloomberg Law

Law

Paul Weiss is enhancing its patent litigation department by hiring Elizabeth Stotland Weiswasser and Anish Desai from Weil Gotshal & Manges. Weiswasser, who has held significant leadership roles at Weil, will serve as one of five co-chairs in the litigation department. The duo has previously represented major clients including tobacco giant Altria and pharmaceutical companies Sanofi-Aventis and Regeneron Pharmaceuticals.

 

Bloomberg Law

Attorneys for SpaceX and Amazon have sought to convince a panel of judges at the Fifth Circuit Court of Appeals that the National Labor Relations Board (NLRB), created by Congress in 1935, is unconstitutional. The lawsuits are among more than two dozen challenges brought by companies who say the NLRB's structure gives it unchecked power to shape and enforce labor law. AP News says a ruling in favor of the companies "could immensely diminish – or paralyze" the NLRB. In a statement issued before the hearing, NLRB General Counsel Jennifer Abruzzo said it was “nothing new for big companies to challenge the authority of the NLRB to enforce workers’ rights so as not to be held accountable for their violations” of labor law.

 

AP News

The Baltimore Sun

NPR

The Department of Justice (DOJ) is reportedly planning to tell Google that it must sell its web browser, Chrome, having previously ruled that the tech giant operates an online search monopoly. Google will also reportedly be asked to establish new measures around its artificial intelligence, Android operating system and use of data. In October, the DOJ suggested that it could seek a break-up of Google as it considered the remedies and penalties it could impose. In response, Google said "splitting off" parts of the business like Chrome or Android would "break them" and “change their business models.” Amid reports that the DOJ may force the sell-off of Chrome, Google executive Lee-Anne Mulholland observed: “The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case.” She added: “the government putting its thumb on the scale in these ways would harm consumers, developers and American technological leadership at precisely the moment it is most needed.”

 

ABA Journal

BBC News

Pfizer's attempt to recoup about $75.2m left over from a U.S. Securities and Exchange Commission (SEC) insider trading settlement with billionaire Steven A. Cohen's former hedge fund SAC Capital Management has been rejected by a federal judge.  U.S. District Judge Victor Marrero in Manhattan said Wyeth, a drugmaker Pfizer bought in 2009, did not qualify as a victim of the securities violations underlying the SEC case, and therefore was not entitled to the funds.

 

Reuters

Sean “Diddy” Combs’ legal team has filed a request for the music mogul to appear in court without shackles during an ongoing legal case. The lawyers argue that requiring Combs to be shackled would be prejudicial and unnecessary given the nature of the charges and his cooperative behavior. The motion seeks to ensure he is treated fairly and without undue stigma during court proceedings. No further details on the case specifics or the court's response to the request have been disclosed.

 

US Weekly

A new report reveals that concerns about cyberattacks are increasingly disrupting merger and acquisition (M&A) activities as potential buyers show greater concern over cybersecurity vulnerabilities in target companies. The study, conducted by a global advisory firm, highlights that breaches or inadequate cybersecurity systems have caused delays or cancellations in deal negotiations. "Due diligence now includes extensive cybersecurity assessments, as buyers are unwilling to inherit risks that could result in significant financial or reputational damage," the report states. Experts note that this growing scrutiny is reshaping M&A processes, pushing firms to prioritize robust cyber defense measures to remain attractive to potential investors.

 

Law.com

Young lawyers in London face extreme work conditions in pursuit of high salaries, The Times reports. Research from Legal Cheek reveals that "zillennial" lawyers - those aged 26-29 - often work over 60 hours a week. The pressure leads to stress, burnout, and a lack of social life, as lawyers feel compelled to prioritize client needs above their own well-being. Many are now reportedly questioning whether the financial rewards are worth the toll on their health and happiness. Analysis shows that leading U.S. firms pay the best and demand the most from their NQs, taking the 11 top spots in the table listing hours worked. Most demanding is Weil, Gotshal & Manges, where young lawyers rack up an average of 67.5 hours for Monday to Friday, with weekend working taking their total hours to more than 70 a week. On average, the firm's NQs work 13 hours 23 minutes on every weekday. Second is Kirkland & Ellis, with an average of 13 hours 3 minutes every weekday. Across British firms, junior solicitors at Linklaters log more than 60 hours on average (11 hours 39 minutes per day) while at Freshfields, juniors put in 56.5 hours a week over five days.

 

The Times