Keep your finger on the legal world's pulse
28th October 2025
 
THE HOT STORY
Law firms are aggressively growing their litigation rosters
Four of the largest and most profitable law firms - Kirkland & Ellis, Paul Weiss, Davis Polk, and Paul Hastings - have increased their litigation headcount by at least 22% since the beginning of last year. Bloomberg Law observes that the numbers build on industry reports which show that litigation, not M&A or other deals work, is the most powerful source of demand growth for firms since at least 2023.
CORPORATE
M&A activity on the rise
Global M&A activity rose by 10% in the first nine months of 2025, reaching a total of $1.938trn, according to a report by the Boston Consulting Group. Despite challenges from geopolitical tensions and U.S. tariff policies, dealmakers have continued to pursue strategic opportunities, although the figures remain over 40% below the highs seen in 2021. Notably, North America accounted for more than 60% of the activity, while Europe experienced a 5% decline, particularly in the U.K., which saw M&A value drop by 35%.
FIRMS
Kirkland & Ellis trains lawyers on communication style after investor tensions
Kirkland & Ellis has given its lawyers training on communication style as it tries to combat a reputation for uncooperative behavior in negotiations between its private equity clients and their investors.
LAWSUITS
PepsiCo Gatorade health lawsuit resolved
PepsiCo has resolved a lawsuit that accused the company of misleadingly marketing its Gatorade protein bars as healthy options while containing excessive sugar. The federal judge dismissed the class action with prejudice, indicating that the case cannot be refiled, though it remains unclear if a settlement was reached. Plaintiffs claimed that the bars' high sugar content contributed to serious health issues, while PepsiCo defended its marketing, stating that it did not promote the bars as low in sugar.
CASES
Judge orders release of mental health funds
A federal judge has mandated that the Trump administration release millions in grants aimed at addressing the shortage of mental health professionals in schools. These funds were allocated by Congress following the 2022 school shooting in Uvalde, Texas, to assist schools in hiring counselors, psychologists, and social workers, particularly in rural and underserved areas. However, the Trump administration opposed the diversity criteria used for grant distribution and indicated that funding would cease after December 2025. 
REGULATION
Tesla faces investigation over 'Mad Max' driving mode
The National Highway Traffic Safety Administration (NHTSA) is probing Tesla regarding a new aggressive driver assistance mode called "Mad Max," which reportedly allows vehicles to operate above speed limits. Drivers have described the mode as particularly dynamic, with the ability to "accelerate and weave through traffic at an incredible pace." The inquiry follows an ongoing investigation of 2.9m Tesla vehicles due to multiple incidents involving traffic safety violations linked to the Full Self-Driving (FSD) system.
Fed unveils proposed changes bank stress tests
Reuters reports that the Federal Reserve has laid out plans to make its models and scenarios for subjecting large banks to annual "stress tests" publicly available and responsive to feedback. The shift forms part of efforts to make the Fed's tests more transparent.
APPOINTMENTS
Bumper promotions round at McDermott Will & Schulte
McDermott Will & Schulte has announced a record-breaking promotion of 74 lawyers to partner and 13 to counsel. This follows the merger of McDermott Will & Emery and Schulte Roth & Zabel, creating a firm with nearly $3bn in revenue and 1,750 lawyers. The promotions span 17 cities and five countries, with New York leading the way with 32 new partners. Harris Siskind, the firm’s global transactions head, said: “As our first promotion election post-merger, this class reflects the power of our newly combined platform.” Notably, 31% of the promotions went to women, indicative of the firm's commitment to diversity.
Jack Frost jumps to Greenberg Traurig
Jack Frost has joined Greenberg Traurig as a shareholder in its products liability and mass torts and pharmaceutical, medical device, and health care litigation practices in New Jersey. Frost specializes in products liability, toxic tort, and mass tort litigation, serving as counsel for Fortune 500 companies. His expertise includes defending claims related to pharmaceutical products and toxic tort injuries involving asbestos. Previously, he was with Faegre Drinker Biddle & Reath.
INTERNATIONAL
U.K.'s Drax faces lawsuits over health risks - including in the U.S.
Drax, the U.K.’s largest power station, faces ten lawsuits from current and former employees who claim inadequate protection against health risks linked to wood dust exposure. The allegations cite conditions including asthma and nasal cancer. Six compensation claims have been settled, while four are set for trial in 2026. A class action lawsuit has also been filed in the U.S., representing 700 residents near a Drax facility. Neil Lindridge, a former Drax worker, said: "The dust is so fine that you can only see it in sunlight." Drax has denied ongoing risks despite past internal acknowledgments of health hazards.
OTHER
Amazon begins 30,000-job reduction plan
Amazon has begun laying off 14,000 corporate employees, with up to 30,000 eventual job cuts expected - roughly 10% of its corporate workforce. The layoffs span HR, cloud computing, advertising, and more. Senior VP Beth Galetti described the move as an effort to reduce bureaucracy and invest in key priorities. CEO Andy Jassy linked the reductions to pandemic-era overhiring and increasing use of generative AI. AI-driven cost-cutting is becoming a broader corporate trend across U.S. firms. Amazon plans to release Q3 results on Thursday.

 

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