Keep your finger on the legal world's pulse

Dechert has hired Eliot Relles, a former partner at Weil, Gotshal & Manges, to strengthen its leveraged finance capabilities. Relles brings extensive experience in private credit, having represented lenders such as Cerberus Capital Management and Blue Torch Capital. He also has a history of working with clients including Fortress Investment Group, Kayne Anderson, and TCW Private Credit. Relles will continue to serve his existing clients while at Dechert. The move aligns with Dechert's vision to enhance its finance offerings. Relles spent over 23 years at Schulte Roth & Zabel before joining Weil in 2020. Dechert sees the addition of Relles as a strategic hire to bolster its corporate and securities practice.

 

Bloomberg Law

Law

Reuters

A team of 23 Finance and M&A lawyers, led by Patrizio Messina, has joined Hogan Lovells after leaving U.S. firm Orrick Herrington & Sutcliffe. The new team will focus on structured finance, debt capital markets, and M&A and will be based in Hogan Lovells' Milan and Rome offices. Messina will replace Luca Picone as managing partner for Italy and will work alongside partner Vittorio Moresco, who will assume the role of deputy managing partner. Hogan Lovells will now have more than 160 lawyers in Italy, including 26 partners. "We are delighted to welcome this highly talented team to Hogan Lovells," said the firm's global head of finance, Sharon Lewis. "Their arrival will significantly strengthen our capabilities in Italy and across Europe."

 

Reuters

Fenwick & West, a Silicon Valley stalwart, is laying off nearly 10% of its lawyers and staff members due to a slowdown in transactional activity. The firm's chair, Richard Dickson, took responsibility for the layoffs and expressed regret for the impact on employees. Those affected will receive severance packages based on their tenure. Fenwick & West had aggressively hired during the COVID-19 pandemic but found that talent levels were misaligned with client demand. The layoffs are aimed at realigning the firm's talent and addressing the slowdown in transactional activity.

 

ABA Journal

New Mexico's Democrat-led House of Representatives narrowly rejected a bill that would have guaranteed paid time off for workers to cope with serious illnesses or care for newborns and loved ones. The proposal failed on a final vote, with concerns about companies' opposition in an election year. New Mexico already requires employers to provide paid sick leave to workers, ensuring up to eight days of leave annually. The failed proposal for paid leave would have eventually provided workers with up to 12 weeks of medical and family leave, including guarantees for workers who are victims of stalking, domestic violence, sexual assault, and abuse. Republican state Rep. Alan Martinez voted against the bill, citing opposition from the Albuquerque chamber. Democratic state Rep. Christine Chandler pitched the initiative as a net benefit to businesses, highlighting exemptions for organizations with fewer than five employees.

 

U.S. News

Oracle America has agreed to pay $25m to settle a class action lawsuit accusing the company of underpaying around 4,000 female employees in California compared to their male counterparts. The settlement also includes an independent expert to review Oracle's practices for compliance with anti-discrimination laws. The lawsuit, filed in 2017, alleged that Oracle paid men in IT, product development, and support positions up to $13,000 more per year for the same work as women, violating the California Equal Pay Act. Oracle did not admit wrongdoing under the settlement. The case is Jewett v. Oracle America Inc.

 

Reuters

Tinder, Hinge, and other dating apps are facing a proposed class-action lawsuit that claims they are designed with addictive features that encourage "compulsive" use. The lawsuit, filed against parent company Match Group, alleges that the dating platforms prioritize profit over helping users find relationships by using game-like features that "lock users into a perpetual pay-to-play loop." This leads users to become "addicts" who purchase expensive subscriptions to access special features. The lawsuit seeks class-action status and was filed by six dating app users. Match Group has not yet responded to the allegations. The lawsuit comes at a time when tech companies are facing increased scrutiny over addictive features that harm users' mental health. Meta Platforms, the parent company of Facebook and Instagram, is also facing a lawsuit over similar concerns. The lawsuit against Match claims that the company uses dopamine-manipulating product features to keep users hooked.

 

U.S. News

The Baltimore Sun

A group founded by anti-affirmative action activist Edward Blum is suing the Alabama Real Estate Appraisers Board over its race-based criteria for membership. The lawsuit, filed in federal court in Montgomery, is the first case brought by Blum's American Alliance for Equal Rights challenging race-based criteria for a state regulatory board. The group argues that the requirement for the board to include at least two racial minorities violates the equal protection clause of the U.S. Constitution's 14th Amendment. Blum's group is being represented by lawyers from the Pacific Legal Foundation. Similar lawsuits have been filed in 25 states by the foundation, challenging race and sex-based membership requirements for public boards and commissions. The case is American Alliance for Equal Rights v. Ivey, U.S. District Court for the Middle District of Alabama, No. 2:24-cv-00104.

 

Reuters

A class action suit has been filed in federal court in New York, alleging that the major junior hockey system in North America violates U.S. antitrust law. The lawsuit, brought by divisions of the World Association of Icehockey Players Unions and two former major junior players, targets the Quebec Maritimes Junior Hockey League, Ontario Hockey League, Western Hockey League, and the NHL. The plaintiffs claim that the leagues exploit teenagers by restricting their ability to choose where to play and limiting their compensation. The NHL is named as a defendant for its role in supporting and financing the Canadian Hockey League. The lawyers argue that the system "artificially suppresses and standardizes compensation by denying players their freedom of choice, freedom of movement, and freedom to play for the club of their choice." The lawsuit seeks an injunction to enforce geographical draft restrictions, contracts, and agreements, as well as damages for players and from league profits. Plaintiffs are asking for a jury trial. Isaiah DiLaura and Tanner Gould, two former major junior players, are part of the suit.

 

The Columbian

Washingtonpost.com

Embracing innovation is crucial for legal departments to become change catalysts in the industry, according to Darth Vaughn, Managing Director, Legal Ops+ and Litigation Counsel at Ford Motor Company. Ford Motor Company has successfully implemented generative artificial intelligence (AI), resulting in significant productivity gains and cost savings. It has also embraced automation and predictive analytics to streamline legal operations. Vaughn emphasizes the importance of diversity, risk-taking, empowerment, education, and collaboration in encouraging innovation in the legal industry. He says legal departments play a crucial role in driving industry-wide transformations and redefining legal service delivery, and working in the legal tech world offers the opportunity to be part of groundbreaking projects, contribute to societal benefits, and collaborate with diverse minds.

 

Law

Colorado has filed a lawsuit to block Kroger's $24.6bn acquisition of Albertsons, becoming the second state after Washington to challenge the deal. Attorney General Phil Weiser expressed concerns about the merger, stating that it would negatively impact shoppers, workers, and farmers. “These fears are warranted because the market for grocery stores in Colorado is already very concentrated, with too little competition", he said. “This merger would make the problem worse, with Kroger controlling roughly half of all the supermarkets in Colorado". The state is seeking a preliminary injunction to prevent the deal from closing. Kroger and Albertsons expressed disappointment in the lawsuit and stated that they are in discussions with regulators and other state attorneys general. It also alleged that the two grocers had agreements not to poach each other's workers and not to persuade pharmacy customers to switch. The Federal Trade Commission is expected to make a decision on whether to challenge the deal before the end of the month. 

 

Bloomberg

The Denver Post

Reuters

Diageo has successfully defended its victory in a lawsuit against W.J. Deutsch & Sons over the design of its Bulleit whiskey bottles. The 2nd U.S. Circuit Court of Appeals in Manhattan upheld the lower court's decision that Deutsch's Redemption whiskey bottles must be redesigned due to diluting Diageo's Bulleit trademark rights. Diageo argued that the Bulleit brand was famous enough to warrant the design change. The court expressed skepticism over Deutsch's argument that a higher degree of fame was required. The case raises questions about the standard for fame and recognition in trademark disputes. The case is Diageo North America Inc. v. W.J. Deutsch & Sons Ltd, 2nd U.S. Circuit Court of Appeals, No. 22-2106.

 

Reuters