Keep your finger on the legal world's pulse

Five organisations, including the Vera Institute of Justice and the Center for Children & Youth Justice, are suing the U.S. Justice Department and Attorney General Pam Bondi over the termination of grants worth nearly $820m. The lawsuit, filed in Washington District Court, claims the cancellations were unconstitutional and lacked due process. The plaintiffs argue that the Justice Department's new priorities, cited in form letters sent to over 360 awardees, were not legally defined and that the agency exceeded its authority. Skye Perryman, president and CEO of Democracy Forward, said: "The sudden and unlawful termination of these public safety grants makes neighborhoods everywhere less safe and does irreparable harm to communities across the country.” The organizations seek reinstatement of the funds and regular compliance reports.

 

ABC News

Roll Call

U.S. News

Recent incidents involving AI-generated errors in legal documents have raised significant concerns within the legal community. A notable case involved Anthropic's AI bot, Claude, which produced incorrect citations in an expert testimony for a lawsuit, prompting plaintiffs to request its dismissal. Latham & Watkins,representing Anthropic, described the errors as an “honest citation mistake,” but Magistrate Judge Susan van Keulen expressed doubts, stating: “There is a world of difference between a missed citation and a hallucination generated by AI.” The issue is compounded by a growing number of cases where AI-generated inaccuracies have gone unnoticed, with legal experts like UCLA's Eugene Volokh warning that lawyers must rigorously verify AI outputs to avoid severe repercussions. As AI's role in legal proceedings expands, the need for caution and verification becomes increasingly critical.

 

Los Angeles Times

Generative AI is transforming the legal landscape, with Gen Z eager to embrace this technology in their workplaces. As the most tech-savvy generation, they are seeking law firms that align with their modern expectations. A 2024 Deloitte survey revealed that 64% of Gen Z prioritise work-life balance when choosing employers. Meanwhile, LexisNexis data indicates that the use of generative AI among legal professionals has more than doubled from July 2023 to January 2024. Maria Sevlievska, a senior legal specialist at Robin AI, highlights that traditional firms risk losing top talent if they do not adapt to these technological advancements. The future of law is undoubtedly tech-driven, led by the aspirations of young lawyers.

 

Law

Gavel has introduced Gavel Exec, an AI assistant integrated into Microsoft Word, designed to assist small law firms with senior-level tasks. This tool enables lawyers to conduct contract analysis, negotiate based on firm precedents, and create playbooks with predefined rules. Gavel Exec has been tested with law firm customers to ensure its effectiveness, focusing initially on corporate and real estate law. Unlike typical legal assistants, Gavel Exec employs proprietary AI agents that consider the entire context of a firm's documents and guidelines, providing intelligent edits.

 

Legal Tech Monitor

Big Law firms are adopting a more cautious approach to Special Purpose Acquisition Companies (SPACs) following the lessons learned from the previous boom. Elliott Smith, a partner at Perkins Coie, noted: “A lot of law firms took some big write-offs,” leading to a more selective client strategy. Some firms are negotiating broken deal fees, while others are ensuring fees are guaranteed during the initial public offering stage. Joel Rubinstein from White & Case highlighted the increased due diligence before engaging in de-SPAC transactions. Despite the resurgence of SPACs, which have raised about $9.5bn this year, the market has not yet reached its previous heights. Douglas Ellenoff of Ellenoff Grossman & Schole anticipates a larger share of de-SPAC transactions as larger firms become more conservative. Lawyers remain hopeful for successful deals, with Smith expressing cautious optimism about the current SPAC vintage.

 

Bloomberg Law

Despite being busy and attracting new clients, many law firms struggle to turn a profit. According to the 2025 Legal Industry Report from MyCase, 68% of law firms cite fee collection as a significant challenge, highlighting a disconnect between billable hours and actual income. The report reveals that 53% of firms find invoicing difficult, while 55% struggle with time tracking, leading to inefficiencies that cost them over 11 hours monthly. To address these issues, firms should automate invoicing and payment reminders, as 80% of firms now use invoicing software, saving valuable time. Additionally, offering online payment options has proven beneficial, with 82% of firms accepting credit/debit card payments and 59% reporting improved collection rates. As Claude Ducloux from AffiniPay notes, "delays can make collection more difficult," emphasising the need for proactive financial management.

 

Above the Law

In Q1 2025, law firm leasing activity reached 3.4m sq ft, with over two-thirds of leases being renewals, marking a notable increase from previous years. According to Savills' The Legal Tenant report, this represents a doubling of leasing volume compared to the same period in 2024, with 68.8% of firms opting to remain in their current locations. Mayer Brown secured the two largest deals of the quarter. The report highlights that while the activity slightly lagged behind Q4 2024's record of 3.8m sq ft, it indicates "sustained momentum" in the legal sector.

 

Law

In a surprising turn during the Supreme Court's oral arguments on birthright citizenship, class actions emerged as a significant topic, overshadowing discussions on universal injunctions. David Lat highlights that Adam Feldman of Legalytics noted class actions were among the top three issues raised. Vanderbilt law professor Brian Fitzpatrick remarked: “I was surprised by how much class actions were mentioned,” indicating a strong interest in this alternative legal route. Solicitor General D. John Sauer argued that class actions could provide a viable solution, stating: “Article III [of the Constitution] and the courts' traditional equitable practices provide a range of tools to address that, including a potentially nationwide class action.” However, Fitzpatrick cautioned that class actions may not effectively resolve issues like forum shopping, as they still allow plaintiffs to choose their filing locations. The implications of these discussions were further underscored by the subsequent ruling in A.A.R.P. v. Trump, which allowed provisional relief to a putative class, raising concerns about judicial overreach.

 

Bloomberg Law

Ford Motor Company has filed a lawsuit against several California lawyers and law firms, alleging fraudulent inflation of legal fees under the state's Lemon Law. The complaint, lodged in Los Angeles federal court, describes the alleged billings as a "magical mystery tour" of fictitious work, with instances of lawyers billing over 24 hours in a single day. Ford claims to have lost at least $100m over five years due to this scheme, which it attributes primarily to the Knight Law Group. The automaker is seeking at least $300m in damages under the federal anti-racketeering law, RICO. The case is officially titled Ford Motor Co v Knight Law Group LLP et al, U.S. District Court, Central District of California, No. 25-04550.

 

Bloomberg Law

U.S. News

In a significant ruling, a Georgia state court has sided with OpenAI in a defamation lawsuit, marking a potential precedent in generative AI cases. The case arose when Mark Walters, a radio talk show host and Second Amendment activist, claimed that OpenAI's chatbot, ChatGPT, falsely stated he was involved in an embezzlement lawsuit. Gwinnett County Superior Court Judge Tracie Cason granted summary judgment in favour of OpenAI, stating: "The court finds no basis for the claims against OpenAI." This ruling comes nearly two years after Walters initiated the lawsuit, alleging that ChatGPT fabricated a lawsuit against him related to the Second Amendment Foundation.

 

Law

Carliss Chatman, an associate law professor at SMU, warns that federal contractors who abandon DEI agreements may face significant legal risks. The rollback of race-conscious contracting, particularly affecting Black-owned businesses, could lead to liability under 42 U.S.C. § 1981. Chatman states: "Contracting isn't a race-neutral act," highlighting the potential for litigation if race is a factor in altering contractual relationships. Companies like Target and McDonald's are already under scrutiny for their DEI reversals, which could trigger obligations under Regulation S-K for public firms. As the legal landscape evolves, maintaining inclusive contracting practices is not just a policy choice but a crucial aspect of risk management.

 

Bloomberg Law

Goodwin Procter has terminated its relationships with key DEI organisations, including the Sponsors for Educational Opportunities legal fellowship and the Leadership Council for Legal Diversity, following scrutiny from the Equal Employment Opportunity Commission (EEOC). The firm disclosed that for 2026, applicants for its fellowship programme will no longer need to demonstrate a commitment to DEI. This decision comes amid a broader investigation into the firm's diversity initiatives, with the EEOC requesting extensive data on past fellowship recipients and hiring practices. Goodwin Procter has also replaced its DEI terminology with “opportunity, inclusion, and belonging.” The firm’s actions reflect a significant shift in its approach to diversity in the legal profession.

 

Bloomberg Law

PepsiCo Inc. achieved a significant legal victory when the U.S. Federal Trade Commission (FTC) unanimously voted to dismiss an antitrust lawsuit filed at the end of the Biden Administration. The FTC had initiated the lawsuit on January 17, invoking the Robinson-Patman Act, which prohibits price discrimination against retailers. Former FTC Chair Lina Khan, along with two Democratic commissioners, supported the case despite opposition from Republican members. This dismissal marks a pivotal moment for PepsiCo, allowing the company to continue its operations without the burden of this legal challenge.

 

Bloomberg Law

U.S. News