Keep your finger on the legal world's pulse
18th March 2025
 
THE HOT STORY
Major law firms warned about their DEI policies
Andrea Lucas, the acting chair of the U.S. Equal Employment Opportunity Commission, the U.S. agency that enforces laws banning workplace discrimination, has warned 20 major law firms, including Perkins Coie, Hogan Lovells, Ropes & Gray, and WilmerHale, that their employment policies meant to boost diversity, equity and inclusion may be illegal. Lucas said she was concerned that the firms' policies "may entail unlawful disparate treatment in terms, conditions, and privileges of employment, or unlawful limiting, segregating, and classifying" based on race, gender, and other protected characteristics. She has requested the name, gender and race of every lawyer who has worked at or applied for a job at the firms since 2019, and whether each one participated in diversity programs or "affinity groups." Some of the information should be in a "searchable Excel spreadsheet," Lucas said.
TECHNOLOGY
Cleary acquires London Gen AI-focused legaltech start-up
Cleary Gottlieb Steen & Hamilton has acquired London-based Springbok AI, a generative AI-focused legal technology company, bringing its founder and a team of 10 data scientists and AI engineers on board. The acquisition is notable as it marks one of the few instances of a law firm acquiring a legal tech company. Cleary's managing partner, Michael Gerstenzang, said that the deal "immediately enables us to create custom AI-powered solutions – something that sets us apart from many of our competitors.” The integration of Springbok’s proprietary platform, SpringLaw, will enhance Cleary's AI Acceleration team, which aims to develop tailored AI solutions for various legal practices. This move follows a trend among law firms to explore AI opportunities, with many partnering with AI platforms to improve their workflows.
FIRMS
Kirkland & Ellis partners earn $9m
Kirkland & Ellis, the world's highest-grossing law firm, reported an average partner profit of $9.25m for the year ending December, marking a 16% increase from the previous year. The firm achieved a record revenue of $8.8bn, driven by a resurgence in dealmaking. Despite a decline in global M&A activity below $3trn in 2023, Kirkland advised on over $431bn of transactions, securing a market share exceeding 14%. The firm expanded its equity partner ranks by 6% to 573 and increased its global lawyer headcount by nearly 9% to over 3,800. Kirkland has also opened new offices in Frankfurt and Riyadh to enhance its presence in Europe and the Middle East.
LAWSUITS
Judge dismisses Amazon shareholder lawsuit
A U.S. judge has dismissed a lawsuit against Amazon, which accused the company of defrauding shareholders through misleading statements regarding its treatment of third-party sellers and capacity expansion plans. Shareholders accused Amazon of concealing an algorithm that ensured its private-label products would cost less than outside merchandise, raising prices for consumers generally. They also said Amazon concealed the overexpansion of its infrastructure and fulfillment network, causing its stock price to tumble in April 2022 when it incurred $2bn of costs for excess capacity. U.S. District Judge John Chun's ruling in Seattle was made with prejudice, indicating that the lawsuit cannot be refiled.
Closing arguments begin in pipeline company's lawsuit
Closing arguments have begun in a lawsuit filed by Dallas-based Energy Transfer against Greenpeace, in a case which could impact free speech and protest rights. The case revolves around allegations of defamation, trespass, and nuisance related to protests against the Dakota Access Pipeline. Energy Transfer claims Greenpeace orchestrated a campaign to halt construction, leading to significant financial losses. Trey Cox, the company's attorney, said that Greenpeace's actions "scared off lenders," resulting in the loss of half its banks. Greenpeace, however, argues that the lawsuit is an attempt by corporations to silence critics and is a crucial test of free speech rights.
Starbucks hit with $50m burn verdict
A Los Angeles County jury has found Starbucks liable for $50m in damages to a man who suffered severe burns during a drive-through incident in 2020. Michael Garcia claimed that a tray of hot teas collapsed, spilling the drinks onto his lap and causing "horrific burn injuries that required multiple surgeries." Garcia's attorneys argued that Starbucks failed to ensure the safety of its products, while Starbucks contended that Garcia shared some responsibility for the incident. Starbucks said it plans to appeal the verdict. “We sympathize with Mr. Garcia, but we disagree with the jury's decision that we were at fault for this incident and believe the damages awarded to be excessive,” Starbucks Director of Corporate Communications Jaci Anderson said. “We have always been committed to the highest safety standards in our stores, including the handling of hot drinks.”
CORPORATE
Cravath, Cooley steer Pepsi's Poppi purchase
Lawyers from Cravath, Swaine & Moore and Cooley have steered PepsiCo's $1.95bn purchase of “healthy” soda brand Poppi. Cravath has a longstanding advisory relationship with PepsiCo. The demand for such beverages has surged, particularly among younger consumers in the U.S. who are increasingly focused on fitness and lifestyle choices. Founded by Allison and Stephen Ellsworth in Austin, Texas, Poppi's deal includes $300m in expected cash tax benefits, resulting in a net purchase price of $1.65bn. The deal comes as the soda industry is facing fresh scrutiny from the Make America Healthy Again movement, led by Health and Human Services Secretary Robert F. Kennedy Jr., who has called soda “poison." 
DIVERSITY, EQUITY & INCLUSION
U.S. businesses shun diversity references in annual reports
More than 200 of America’s largest corporate groups have culled mentions of DEI and related terms such as “diversity,” according to data and company filings analysed by the Financial Times. Writing for Bloomberg Law, Buchalter’s Joshua Robbins says President Trump’s executive order to curtail federal DEI programs is an “ambitious gambit” that could prompt legal challenges, and organizations should thoroughly document compliance analysis.
APPOINTMENTS
Alison Flowers joins Ogletree Deakins
Alison Flowers has joined Ogletree Deakins as a shareholder in San Francisco, focusing on state and federal court litigation. Her expertise lies in municipal litigation and public sector labour relations, guiding cities, counties, special districts, and non-profits through intricate legal processes. Flowers handles cases related to wrongful termination, harassment claims, disability discrimination, and labor negotiations. She previously worked at Aleshire & Wynder.
Frank Voon joins Jones Day as partner
Frank Voon has joined Jones Day as a partner in its corporate practice in Hong Kong, focusing on complex, cross-border mergers and acquisitions, as well as private equity transactions. His expertise spans various industries, including automotive, health care, life sciences, mining, energy, real estate, and technology. Voon previously worked at K&L Gates.
Tim McInturf joins Littler Mendelson
Tim McInturf has joined Littler Mendelson as a shareholder in its Houston office, focusing on representing employers in matters of unfair competition, noncompete agreements, and trade secrets. He also defends against discrimination and retaliation claims while advising on workplace policies, hiring, and employment contracts.
OTHER
100m Americans exposed to tap water contaminated with PFAS
Nearly 100m Americans are being exposed to tap water contaminated with chemicals linked to cancer and autism, according to USGS researchers. A quarter of the country relies on groundwater wells contaminated with PFAS, also known as forever chemicals. Major cities like New York, Miami, and Chicago have the highest levels of PFAS in their drinking water, while rural areas have lower levels. Researchers tested 1,200 public and domestic wells nationwide to generate a first-of-its-kind interactive map showing the worst-affected areas. A total of 72% of people relying on public wells nationwide, which supply nine in ten Americans, are thought to be drinking water contaminated with PFAS. New HHS Secretary Robert F. Kennedy Junior has vowed to remove cancer-causing PFAS and other "forever chemicals" from the public food and water supply.

 

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