Keep your finger on the legal world's pulse

Experts have warned that U.S. companies scaling back diversity, equity, and inclusion (DEI) initiatives in response to President Donald Trump's executive order may risk an increase in workplace discrimination lawsuits. The order, which directs federal agencies to terminate DEI programs and encourages private companies to follow suit, has led some businesses to end or reduce such efforts. However, DEI policies like pay audits, diverse hiring practices, and equitable promotions are key tools for ensuring compliance with anti-discrimination laws. Jason Solomon, director of the National Institute for Workers' Rights, commented: “When companies are sued by women or people of color and they're held liable for discrimination... the Trump administration can't save them and nothing in this executive order can save them.” Critics of DEI argue that such programs can sometimes lead to reverse discrimination claims, but experts highlight that dismantling these policies could expose companies to violations of federal and state anti-discrimination laws. The U.S. Equal Employment Opportunity Commission (EEOC) and state agencies received over 130,000 discrimination complaints in 2023, underscoring the potential legal risks for companies that abandon DEI programs.

 

Reuters

Reuters

Rising rates and growing discounts fuel unsustainable billing practices

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With President Donald Trump kicking off his second spell in the White House with a wave of executive orders, corporate law firms are competing to offer clients support and insight. Akin Gump Strauss Hauer & Feld has launched a webpage tracking White House orders, with the site becoming a viral hit. Hogan Lovells is launching an online hub for Mr. Trump's executive actions and Brownstein Hyatt Farber Schreck has also put together an online tracker, while Crowell & Moring, Holland & Knight, Mayer Brown, Littler Mendelson, Paul Hastings, and Ropes & Gray, have produced alerts and webinars. Jason Schwartz, who co-leads the labor and employment group at Gibson, Dunn & Crutcher, said the second Trump administration “is moving at warp speed” and clients are eager to secure guidance.

 

Reuters

A report from the American Bar Association Standing Committee on Pro Bono and Public Service shows that more than 75% of US attorneys provide pro bono service at some point in their careers. Supporting Justice V: A Report on the Pro Bono Work of America’s Lawyers found that just over half of the attorneys surveyed had provided some pro bono legal services in 2022, although one in five has never undertaken pro bono service of any kind. On why they might not provide such services, a lack of time was most often cited as the main challenge. ABA President Bill Bay said: “This report highlights the good work of lawyers across the U.S., while also underscoring the need for more lawyers to volunteer to address the justice gap.”

 

American Bar

With President Donald Trump saying he will deport tens of thousands of immigrants, around 100 lawyers in Colorado have taken part in a crash course in persuading immigration judges to grant bond and release people who are locked up at an ICE detention center. Laura Lunn, an attorney at the Rocky Mountain Immigrant Advocacy Network who helped run the training workshop, said: “You can do such powerful things with a law degree, including securing somebody’s liberty.”

 

Colorado Sun

Analysis suggests that New Jersey’s five-year-old ban on the use of NDAs to cover up workplace misconduct has had little effect on the ability of parties in a complaint to reach a settlement. Mark Gough, a Penn State associate professor of labor and employment relations who conducted the study, says the law has not led to an increase in plaintiff and management-side lawyer caseloads, suggesting that this may be because few people on either the employee or management side are familiar with it.

 

Penn State University

The New Mexico Supreme Court has allowed an anti-discrimination lawsuit against Albuquerque Public Schools to proceed, affirming that public schools can be sued under the New Mexico Human Rights Act. The ruling follows a 2018 incident where a teacher allegedly cut a Native American student's hair and made derogatory comments. The court emphasized that “the intent to prohibit discrimination in public schools has been apparent since the inception of statehood.”

 

U.S. News

A federal judge has granted the U.S. Department of Justice's request to pause a lawsuit by SpaceX claiming the agency lacks the power to pursue claims that the Elon Musk-led company refused to hire certain immigrants. Magistrate Judge Ignacio Torteya made the decision following the agency's request to stay the lawsuit for 45 days, in which it signaled that it could drop or settle the case.

 

Reuters

A U.S. lawsuit has accused LinkedIn of sharing private messages with other companies to train artificial intelligence (AI) models. It is claimed that the networking website introduced a privacy setting that automatically opted users in to a programme that allowed third parties to use their personal data. The firm is also accused of later concealing its actions by changing its privacy policy.

 

BBC News

Reuters

Alternative legal service provider NomosFIT has launched with a team of on-demand senior and mid-career lawyers who can tackle complex legal needs. Of its around three dozen attorneys, many have retired as GCs, chief executives and private practitioners. Chief executive Ellen Tenenbaum, a former partner and commercial litigator at McDermott Will & Emery in New York, said: “We thought there was a real market demand for very experienced lawyers who are able to parachute in, understand the context and complexity of clients’ needs and in a short time frame successfully address those needs in collaboration with the client, and then do all those things for amounts that are manageable within an in house law department’s budget.”

 

Legal Dive

Freshfields continues to boost its presence in the U.S., making several hires including former government officials. Erik Gerding, who served as director of the corporation finance division at the U.S. Securities and Exchange Commission (SEC) until the end of 2024, has been appointed as a corporate partner and will be based in Silicon Valley. Melissa Hodgman, a longtime senior attorney in the SEC's enforcement division, has also joined Freshfields.

 

Reuters

Hoffman & Hoffman, along with founding partner John D. Hoffman, is being sued for at least $35m in damages for alleged interference and civil conspiracy in connection with a proposed merger. The plaintiff alleges that Hoffman & Hoffman provided false information to a party intending to purchase broadband company OpticalTel.

 

Law.com

U.S. existing-home sales in 2024 dropped to their lowest level since 1995, marking the second consecutive year of sluggish performance due to persistently high mortgage rates. Rates for 30-year fixed mortgages have hovered between 6% and 8% since late 2022, making homeownership increasingly unaffordable alongside rising property taxes and insurance costs, which are expected to continue climbing. Rick Palacios Jr., director of research at John Burns Research & Consulting, noted the challenging market outlook, stating: "I don’t really see how that thesis reverses and gets more optimistic as long as mortgage rates stay at 7%." However, some economists see potential for recovery. December 2024 marked the third consecutive month of rising home sales, a trend not seen since 2021.

 

New York Times

Wall Street Journal

Attorney General Chief of Staff Chad Mizelle has directed the termination of three ongoing cases involving protesters accused of blocking abortion clinic entrances. The decision, communicated in a memo to the Civil Rights Division, aligns with President Donald Trump’s directive to curb what he views as the misuse of executive branch power.

 

Washington Examiner

The dress shirt has seen a decline in recent years, especially during the pandemic-driven shift to remote work, when formal attire gave way to casual comfort. However, a resurgence may be underway, spurred by fashion trends and evolving consumer preferences. Nick Paget, senior men’s wear strategist at WGSN, highlights the emergence of “office-core” or “corp-core,” a style trend that has revived interest in the dress shirt as a fashion statement rather than a daily work uniform. Jim Moore, GQ’s creative director at large, echoed Paget’s observations about how attitudes toward dress shirts were evolving and said he had recently noticed point-collar dress shirts coming back into fashion.

 

The New York Times