Keep your finger on the legal world's pulse

Positive financial results in 2024 are poised to fuel Big Law's investments in generative artificial intelligence (AI) in 2025, with firms eyeing transformative changes in legal services, staffing, and training. According to industry experts, firms that prioritize AI integration will gain a competitive edge, improving client services and attracting top talent. A Citi Hildebrandt report highlighted that less than 1% of firms’ revenue was spent on AI in 2023, but this is expected to rise as firms focus on AI-related staffing, infrastructure, and privacy controls. Challenges include maintaining data security and preparing attorneys for new AI-driven workflows. Training programs will play a pivotal role, ensuring lawyers adhere to principles like consent, confidentiality, and competence while adapting to tools designed for consistency and efficiency. While AI may reduce monotonous tasks, experts assert it will enhance rather than replace legal roles, shifting focus to higher-level work. Law firms are optimistic about AI’s potential to reduce risks, increase productivity, and reshape the business of law in innovative ways. 

 

The American Lawyer

The legal landscape in 2024 was shaped by several significant litigation trends that showcased evolving legal theories, regulatory shifts, and market dynamics. Lawsuits targeting "drip pricing" surged as states like California and New York enacted statutes to combat hidden fees, with entertainment, retail, and property management industries at the forefront. Privacy litigation also expanded under California's Trap and Trace Law, as courts broadened its scope to include digital tracking software, raising the possibility of similar cases in other states. Price-fixing allegations and collusion claims gained traction across industries, with scrutiny on trade data and pricing algorithms sparking lawsuits in sectors such as agriculture, real estate, and healthcare. Two landmark U.S. Supreme Court rulings in Jarkesy v. SEC and Loper Bright Enterprises v. Raimondo reshaped regulatory litigation, challenging the authority of agencies and paving the way for increased legal battles in 2025. Meanwhile, the rise of weight-loss drugs like Ozempic and Wegovy drove litigation on multiple fronts, including product liability, patent disputes, and unfair competition claims, signaling continued legal activity as these drugs expand into new medical uses. With legislative changes, new court decisions, and emerging technologies on the horizon, 2025 promises further transformations in the legal sector.

 

Law

In 2024, Pennsylvania law firms pursued significant growth, opening offices nationwide and expanding regionally. Philadelphia-based Weber Gallagher launched in Coral Gables, Florida, led by Michael Garcia, with plans for further southeastern expansion. Vaughan Baio & Partners, later Vaughan McLean, opened offices in Long Island, New York, and Cherry Hill, New Jersey, guided by attorneys Charli Baldinger and George Matteo Jr. Fox Rothschild added a Sarasota, Florida office, increasing its state presence to 50 attorneys. Stradley Ronon expanded westward with a Long Beach, California office, while Blank Rome entered the Boston market, recruiting 25 attorneys from the dissolved Burns & Levinson and launching a cannabis practice. Pittsburgh-based Pietragallo Gordon Alfano Bosick & Raspanti opened in Marlton, New Jersey, under Scott Coffina, and Dilworth Paxson expanded to Erie, Pennsylvania, by absorbing Roger Richards’ corporate and municipal finance practice.

 

The Legal Intelligencer

Sheppard Mullin has announced significant bonuses for its attorneys, reflecting the firm's appreciation for hard work. The firm reported gross revenue of $1,120,922,000 and profits per equity partner of $2,325,000 in 2023, according to the latest Am Law 100 ranking. The bonus structure rewards those who met the 2,000-hour threshold, with additional bonuses of 10% to 20% for those who exceeded the target.

 

Above the Law

The Biden administration is investigating TP-Link, a Chinese network equipment manufacturer that dominates over 60% of the U.S. home internet router market. Representative John Moolenaar, a Republican from Michigan and chairman of the House Select Committee on China Competition, said: “Americans would be wise to stop buying TP-Link equipment,” as he highlighted national security concerns regarding potential ties to Chinese cyberattacks. The U.S. Bureau of Industry and Security (BIS) has subpoenaed TP-Link, and the Departments of Defense and Justice are conducting separate inquiries. The scrutiny comes amid rising fears that Chinese technology could be used for espionage, especially after reports of compromised devices linked to TP-Link in a recent cyberattack. Congress has allocated $3bn to remove Chinese equipment from networks, reflecting a broader effort to reduce reliance on Chinese technology in critical infrastructure.

 

South China Morning Post

Mobile apps are a significant but often overlooked cybersecurity vulnerability, warns Vamsi Krishna, chief information security officer at NopalCyber. With the rise of "bring your own device" policies and mobile-first strategies by cybercriminals, apps have become critical attack vectors. A 2024 Global Mobile Threat Report found that 83% of phishing sites target mobile devices, while 80% of malware stems from sideloaded apps. Traditional mobile security measures are no longer sufficient, as attackers exploit complex APIs and leverage AI to escalate threats. Krishna outlines five key strategies for enhanced security, including comprehensive API monitoring, deploying managed threat detection for mobile devices, regular vulnerability testing, securing data pipelines, and enabling proactive defenses like runtime application self-protection.

 

Legaltech News

Generative artificial intelligence (AI) is significantly enhancing the legal industry by streamlining traditional processes, particularly in e-discovery. According to an IDC Research Study commissioned by Relativity, "50% of respondents have reported that their AI use has increased over the past two years," with generative AI comprising 48% of daily AI applications. In-house teams are encouraged to focus on impactful solutions, with first-pass review identified as a prime area for generative AI application. This approach optimizes workflows, saves time and money, and standardizes document evaluation. However, teams must remain cautious, verifying outputs and adhering to established metrics for accuracy. Relativity ensures privacy and security in its generative AI solutions, emphasizing the importance of responsible data handling. To embark on this journey, organizations should identify effective use cases, recognize opportunities, experiment rapidly, and collaborate for enhanced productivity.

 

Above the Law

The U.S. Supreme Court has been urged by the outgoing administration to reject moves by oil firms and Republican state attorneys general to curb the powers of state and local governments to pursue lawsuits alleging that the companies are concealing the truth about climate change. A representative of Alabama Attorney General Steve Marshall, a Republican, noted that "the future of American energy hangs in the balance."

 

Reuters

Montana's Supreme Court has upheld a lower court's decision that had sided with 16 young activists who argued that the state violated their right to a clean environment. The lawsuit was brought by students arguing that a state law banning the consideration of climate when choosing energy policy was unconstitutional. In a 6-to-1 ruling, the top court found that the plaintiffs, between ages five and 22, had a "fundamental constitutional right to a clean and healthful environment." Only a handful of states, including Hawaii, Illinois, Pennsylvania, Massachusetts and New York, have similar environmental protections enshrined in their constitutions. Montana must from now on “carefully assess the greenhouse gas emissions and climate impacts of all future fossil fuel permits,” said Melissa Hornbein, an attorney with the Western Environmental Law Center and attorney for the plaintiffs. Republican Gov. Greg Gianforte warned of “perpetual lawsuits that will waste taxpayer dollars and drive up energy bills for hardworking Montanans,” adding “This decision does nothing more than declare open season on Montana’s all-of-the-above approach to energy.” 

 

AP News

BBC News

The U.S. Supreme Court is considering an environmental review of planned train tracks to carry oil shipments, with campaign groups frequently citing the National Environmental Policy Act (NEPA) to obstruct certain projects. Former Bush administration Solicitor General Paul Clement said in court that “NEPA is designed to inform government decision-making, not paralyze it.” Appellate advocate Michael Kimberly noted that when the Act is used in such a way as to force authorities to consider every possible downstream effect, this produces “endless hooks for groups that are anti-development to slow things down.”

 

Legal Dive

EY is facing allegations of enabling fraudulent revenue inflation by Brooge Petroleum and Gas Investment Company FZE, according to a lawsuit filed by investors in Manhattan federal court. The investors claim EY’s audits concealed fabricated revenue data, allowing Brooge to secure an $180m special purpose acquisition company (SPAC) merger with Twelve Seas Investment Co. in 2019. The suit alleges Brooge falsified contracts and payments to inflate revenue by tens of millions between 2018 and 2020, with EY issuing unqualified audit opinions to legitimize the financials. Plaintiffs assert EY played a “critical” role, even allegedly assisting in structuring the fraudulent invoicing scheme to mislead investors and U.S. regulators. The U.S. Securities and Exchange Commission had charged Brooge with related violations in December 2023, highlighting fabricated contracts and sham payments. The investors, including Anvil Trust and Stephen Cannon, accuse EY of negligence and violations of securities laws, claiming the scheme inflated Brooge’s valuation to over $1bn.

 

New York Law Journal

New Jersey has issued new guidance on workplace accommodations for pregnant, postpartum, breastfeeding, lactating workers, and those seeking an abortion. The state's civil rights division director, Sundeep Iyer, emphasized that these protections allow workers to perform their jobs "safely and without fear of discrimination or retaliation." Employers have to grant “reasonable” accommodations “absent an undue hardship,” the 28-page guidance states. “Reasonable accommodations must be provided for even modest, minor, and/or episodic problems or needs . . . This includes granting a reasonable accommodation when requested by an employee who is returning to work after giving birth, experiencing a miscarriage or stillbirth, or terminating a pregnancy.”  Violations of these protections could result in fines ranging from $10,000 to $50,000. The guidance comes amid a lawsuit against First Lady Tammy Murphy, who allegedly denied a state trooper accommodations for breastfeeding.

 

New Jersey Herald

The Wall Street Journal reports on what constitutes a valid will, featuring a case study of a Montana man who had recorded a will on video which was later ruled to be invalid. The Montana Supreme Court ruled that the recording, “while undoubtedly expressing testamentary intent,” was not acceptable. The article notes that while some states will allow electronic wills, "a paper will, drafted by a lawyer, and signed by you with a 'wet signature,' witnessed and notarized, is still the gold standard." Chuck Borek, general counsel at online will provider FreeWill, argued however: “It’s a fool’s errand to tenaciously claim that everything has to be on paper. This isn’t the time of Charles Dickens."

 

Wall Street Journal

The Asia legal market in 2024 faced significant scaling down, marked by law firm exits, layoffs, and strategic shifts, particularly in Greater China. Mayer Brown's high-profile split from its Hong Kong partner Johnson Stokes & Master (JSM) ended a 16-year merger and attracted substantial attention. Meanwhile, Kirkland & Ellis and Skadden made headlines with layoffs and office closures in Hong Kong and Shanghai, with Skadden reportedly reducing up to 70% of its Greater China corporate team. Other U.S. firms like Dechert and Gibson Dunn also scaled back operations in Hong Kong and Singapore, respectively, while Morrison & Foerster’s partner defections to Baker McKenzie highlighted Singapore's competitive legal market. In India, law firms like Cyril Amarchand Mangaldas prepared for market liberalization, signaling optimism amidst regional uncertainty. As firms reassess their presence in Asia due to profitability concerns and operational risks, the region remains a challenging yet intriguing landscape for global legal players.

 

Law