Keep your finger on the legal world's pulse
23rd April 2025
 
THE HOT STORY
Law firms to ask judges to permanently block executive orders
Perkins Coie and WilmerHale are today set to request judges to permanently block President Donald Trump's executive orders, which they argue are unconstitutional and threaten their business operations. The firms contend that the orders, imposed in March, retaliate against them for their past legal work and associations with attorneys viewed unfavorably by Trump. “Although Perkins Coie did not bring this suit lightly, it was compelled to do so to preserve its ability to continue representing the best interests of its clients,” lawyers for Perkins Coie wrote in a filing ahead of the hearing. “The Constitution does not permit our elected leaders, from any party, to punish lawyers by fiat for representing clients who oppose their political agendas. It would set a grave precedent for our Republic if the Order were allowed to stand.”
EMPLOYMENT LAW
Tesla settles lawsuit which alleged widespread racism at Fremont
Tesla has reached a confidential settlement in a lawsuit filed by Raina Pierce, a former worker at its Fremont factory, who alleged racial harassment and discrimination. Pierce claimed her manager referred to the facility as “the plantation” and that she faced racial slurs from supervisors. The lawsuit, which highlighted systemic anti-Black racism at the California plant, was part of a broader pattern of legal actions against Tesla regarding workplace discrimination. Pierce's attorney, Hunter Pyle, confirmed the settlement followed court-ordered arbitration and mediation. Tesla continues to face multiple lawsuits alleging it has failed to adequately address racial harassment. California's Department of Fair Employment and Housing has also filed a suit against the company.
Amazon 'must negotiate with Teamsters at San Francisco warehouse'
The U.S. federal labor board has mandated that Amazon must engage in collective bargaining with warehouse workers at its San Francisco distribution center. A complaint from the National Labor Relations Board (NLRB) claims Amazon unlawfully refused to negotiate after a majority of employees signed union authorization cards. Amazon has contested the complaint, labeling it as “baseless” and asserting it undermines employee rights. The complaint sets the stage for bargaining orders “at many other locations where Amazon has dodged its legal obligation to negotiate with the union,” the Teamsters said. The case is set for a hearing on August 5, where an administrative law judge will determine if Amazon should be compelled to negotiate.
FIRMS
A&O Shearman announces first post-merger partner promotions round
A&O Shearman has promoted 33 lawyers to partner, effective from 1 May 2025. This marks the firm's first promotions round since its merger last year, following a 10% reduction in its partnership to focus on growth areas. The promotions span 11 practice areas across 16 offices, with the M&A practice gaining the most partners globally, totalling 10. Notable promotions include M&A lawyers Temilope Esho, James Green, and Xin Ni Lim in London, alongside energy specialists Mike Campbell and Richard Chamberlain in Dubai. The firm is transitioning to an all-equity partnership and implementing a modified lockstep system for partner compensation as part of its integration process.
Baker Donelson opens in New Jersey
Baker Donelson has expanded its presence in the northeast by hiring a 26-lawyer team from Epstein Becker Green and establishing its first offices in Princeton and Iselin, New Jersey. Timothy Lupinacci, chair and CEO of Baker Donelson, said that the firm's growth strategy focuses on becoming "trusted advisors with industry depth and proactive counsel." The new team includes 17 shareholders, with expertise in health care transactions, litigation, and real estate. Notable hires include Gary Herschman, co-chair of the health care transactions group, and Anthony Argiropoulos, a prominent health care litigator. This expansion increases Baker Donelson's office count to 26, following previous growth in the Carolinas.
LAWSUITS
FTC sues Uber over ‘deceptive’ subscription service
The Federal Trade Commission (FTC) has filed a lawsuit against Uber over deceptive billing and cancellation practices regarding its Uber One subscription service. Uber falsely claimed that users would save about $25 a month through the service and deceived them about how easy it was to cancel, the FTC said in the lawsuit filed in San Francisco. "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," FTC chair Andrew Ferguson said. "The Trump-Vance FTC is fighting back on behalf of the American people." In response, Uber spokesperson Noah Edwardsen said the company does not sign up or charge customers without their consent. "We are disappointed that the FTC chose to move forward with this action, but are confident that the courts will agree with what we already know: Uber One's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law," he added.
GameStop CEO sued for $47.2m profits
GameStop chief executive Ryan Cohen is facing a lawsuit from Bed Bath & Beyond to recover $47.2m in profits from stock trading prior to the retailer's bankruptcy. U.S. District Judge Naomi Reice Buchwald ruled that Cohen and his RC Ventures must defend against claims of insider trading, as they sold over 10% of their Bed Bath stake within six months. Mr Cohen argued he was unaware of his stake exceeding 10% due to the retailer's stock buyback program, but the judge noted that Bed Bath had disclosed this information. Mr Cohen sold his stake in August 2022, netting an estimated $60m profit.
Toxic chemicals litigation outside old policies, insurer says
Liability policies issued to defense firm Lockheed Martin from the 1950s to the 1970s do not cover defense costs in lawsuits related to the alleged discharge of toxic chemicals from a Florida plant, according to a Loews insurance unit. Continental Casualty Co. said the U.S. District Court for the District of Maryland should dismiss the company’s amended complaint. Lockheed faces litigation “seeking damages arising from alleged injuries associated with purported exposure to hazardous substances generated, stored, or disposed of by Lockheed Martin at its weapons manufacturing facility in Orlando, Florida.”
APPOINTMENTS
Greenberg Traurig recruits gaming partners
Ali Bartlett and Rajat Shah have joined Greenberg Traurig as shareholders in its gaming practice. Bartlett, who previously worked at Bose McKinney & Evans, focuses on regulatory compliance, corporate, and licensing matters in the casino gaming and state lottery sectors. Shah, coming from Harris Beach Murtha Cullina, offers strategic counsel on gaming and hospitality issues, including bond offerings, mergers and acquisitions, corporate restructuring, and securities compliance.
RISK
Sensitive documents improperly shared with thousands
Officials serving both under former U.S. President Joe Biden and U.S. President Donald Trump erroneously publicized classified information to thousands of federal employees. The information was shared in a Google Drive folder by General Services Administration (GSA) employees with the whole GSA workforce. Among the data made privy to the over 11,200 staff were potentially confidential White House floor plans and particulars for a proposed armored door for the White House visitor center.
TAX
Justice Dept retreats from plan to expand tax division across U.S.
Reuters reports that the U.S. Department of Justice (DOJ) has backed away from a plan to break up its Washington-based tax division and send prosecutors to offices throughout the country. A new plan would house tax attorneys within the DOJ's civil and criminal divisions, otherwise keeping intact the unit which specializes in enforcing the tax code. The initial plan to send tax attorneys to U.S. attorneys' offices was part of a broader proposed shakeup at the DOJ. That proposal drew criticism from dozens of former tax officials, including Rod Rosenstein, the second in command at the DOJ during the first Trump administration. "If the goal is to increase efficiency and our return on investment, eliminating the Tax Division would be an epic failure," the officials wrote, saying that decentralizing the division would risk inconsistent application of tax law.
INTERNATIONAL
U.K. law firms accused of sustainability hypocrisy
London’s biggest law firms have been accused of hypocrisy over their climate sustainability claims, with analysis showing that they have facilitated billions of pounds of fossil fuel deals. Researchers at the campaign group Law Students for Climate Accountability found that between 2020 and 2024, a group of 100 law firms facilitated more than £1.5trn ($2trn) in fossil fuel transactions, with large London-based firms accounting for more than £45bn ($60bn) in fossil fuel transactions in 2024 alone. The researchers gave four Magic Circle firms - A&O, Clifford Chance, Freshfields and Linklaters - “fail” marks for sustainability, while Slaughter and May was criticized for issuing marketing material which claimed sustainability "is a whole business proposition" for the firm while analysis suggests it facilitated at least $153m in fossil fuel transactions in 2024. Ashurst and Pinsent Masons also drew criticism in the report and the researchers have suggested that the legal profession’s "current approach to sustainability is to have their cake and eat it."

 

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