Keep your finger on the legal world's pulse

More than 20 Republican state attorneys general have written to the American Bar Association (ABA) warning of potential discrimination breaches involving diversity standards in the Bar's law school accreditation system. The letter raises concerns about the ABA's emphasis on race-based admissions and hiring, stating that it is problematic. The ABA's law-school-accreditation body requires law schools to have diverse faculty and students and take concrete actions to provide opportunities for underrepresented groups. The letter, led by Tennessee Attorney General Jonathan Skrmetti and signed by 21 attorneys general, calls on the ABA to modify its standards to comply with federal law. The ABA is currently considering revisions to its standards and will adopt recommendations at its August meeting. This comes nearly a year after a Supreme Court decision limited the use of race in college admissions. The letter also highlights previous scrutiny faced by law firms over their diversity, equity, and inclusion programs.

 

Bloomberg Law

Reuters

Law firms across the globe are recognizing the importance of embracing generative artificial intelligence (AI) to remain competitive. The rapid advancement of AI and its adoption by corporate legal departments has forced law firms to adapt quickly. Prominent law firms like Latham & Watkins, Cleary Gottlieb, DLA Piper, and Reed Smith have hired AI specialists for newly created roles, signaling an emerging talent war. This trend is not limited to the U.S., as firms in Canada, Spain, Ireland, Latin America, Mexico, Australia, and New Zealand are also appointing AI leaders and developing their own AI tools. In-house legal departments are rapidly embracing AI to handle tasks more efficiently and cost-effectively. To stay relevant, law firms must change their staffing and billing practices, prepare for alternative fee arrangements, and hire AI-savvy lawyers. Leading firms are investing heavily in training their lawyers and incentivizing innovation. The regulatory landscape is also evolving rapidly, with the EU recently approving the groundbreaking AI Act. Law firms with strong regulatory practices may benefit as companies seek guidance on compliance. As one partner put it, "If you are not using AI, you are part of the past."

 

LawFuel

Artificial intelligence (AI) governance expert Rachael Muldoon of Maitland Chambers emphasized the importance of lawyers embracing AI at the London International Disputes Week (LIDW). The event featured discussions on AI's impact on the legal profession, with Professor Richard Susskind highlighting the potential of AI to transform the legal industry. The conference also covered topics such as ESG, litigation funding, enforcement of judgments, and disputes involving states. The challenges and opportunities of AI, including deepfakes and hallucinations, were discussed. The event also explored the role of lawyers in addressing climate change and advancing sustainability. Former Australian prime minister Julia Gillard and ex-UK attorney general Lord Goldsmith participated in sessions on enforcement of judgments and disputes involving states. The conference concluded with a speech by Meg Kinnear, outgoing secretary-general of the International Centre for Settlement of Investment Disputes (ICSID), highlighting the organization's progress in improving transparency.

 

The Global Legal Post

Joyce Brafford of ProfitSolv discusses the importance of workflows in the legal profession. Workflows help lawyers avoid mistakes, work faster and smarter, and ultimately achieve success. The episode of the Non-Eventcast covers various topics, including project management in legal, building effective workflows, managing variables in projects, budgeting for projects, adding follow-up architecture to workflows, and reducing risk in law firms. It also emphasizes the ethical requirement for lawyers to be competent in technology. As Brafford states: "If you’re feeling inefficient but don’t know why: It’s either because you don’t have processes or your processes are not tight enough."

 

Above the Law

Washington state has agreed to pay Munger, Tolles & Olson up to $2.5m for its legal efforts on the case to block Kroger's $25bn acquisition of rival grocer Albertsons. The state filed the lawsuit in January, claiming that the merger would drive up prices. The U.S. Federal Trade Commission and the state of Colorado are also involved in similar lawsuits. Kroger and Albertsons are defending the deal and fighting the cases. Munger Tolles, a Los Angeles-based firm, was hired for antitrust advice and its name appeared on recent filings. The maximum contract amount has been increased from $1m to $2.5m since the work began last year. The Munger Tolles team includes antitrust partners Glenn Pomerantz and Kuruvilla Olasa, both charging $1,190 an hour. In the Washington case, Kroger is represented by Arnold & Porter Kaye Scholer, Weil Gotshal & Manges, and K&L Gates, while Albertsons is represented by Debevoise & Plimpton, Dechert, and Williams & Connolly.

 

Reuters

Former U.S. Deputy Special Counsel, Marc Krickbaum, has rejoined Winston & Strawn in Chicago. Krickbaum, who previously served as a U.S. attorney for the Southern District of Iowa, was part of the investigation into President Joe Biden's handling of classified documents. He left the government in 2021 and has now returned to private practice. The investigation, led by Robert Hur, looked into whether Biden mishandled sensitive government documents. The report concluded that criminal charges would not be brought against Biden due to his cooperation and poor memory. Krickbaum declined to comment on the criticism the report received.

 

Reuters

Evanston, a Chicago suburb, is facing a class-action lawsuit challenging its government-funded reparations program for Black Americans. The lawsuit argues that the program discriminates against non-Black residents. The legal battle is part of a larger movement to challenge race-conscious programs in society. Conservative groups have targeted diversity fellowships and the federal Minority Business Development Agency. The lawsuit could have implications for other communities considering reparations programs. The Supreme Court's 2023 decision striking down affirmative action in college admissions has influenced these legal challenges. Opponents argue that compensating descendants of enslaved people is unfair to those with no family ties to slavery. Evanston's program, which has paid out nearly $5m, is open to Black people who lived in the city or had direct ancestors there between 1919 and 1969. The program offers cash payments and grants for housing. Reparations advocates have anticipated legal challenges and have structured programs to avoid them.

 

ABA Journal

Johnson & Johnson has been ordered to pay $260m in a talc powder lawsuit. The verdict was reached in the 4th Judicial District Circuit Court in Portland, Oregon. The plaintiff claimed that she developed mesothelioma from inhaling the company's talc powder. This comes as Johnson & Johnson faces numerous talc-related lawsuits; it has proposed a $6.48bn settlement through bankruptcy. The company has been accused of not disclosing the potential risks of its talc powder products.

 

Reuters

Tubi, the streaming TV subsidiary of Fox Corp, has filed a lawsuit against Keller Postman, accusing it of manufacturing tens of thousands of meritless discrimination claims. Tubi alleges that the law firm filed uninvestigated complaints of discrimination with private arbitration service JAMS, putting the company on the hook for $48m in upfront arbitration fees. Keller Postman demanded $71.2m to settle the claims. Tubi claims that the law firm "weaponized the arbitration process" and relied on unethical client solicitation and abuse of arbitration fee provisions. Keller Postman denies the allegations, stating that Tubi is pursuing a frivolous claim. 

 

Reuters

Ye, the musician and designer formerly known as Kanye West, is facing a new lawsuit from his former personal assistant, Lauren Pisciotta. Pisciotta alleges that she was subjected to sexual harassment and was not paid her promised $4m salary. The lawsuit, filed in Los Angeles County Superior Court, accuses Ye's businesses of wrongful termination, gender discrimination, fraud, and intentional infliction of emotional and physical stress. Ye's legal representative plans to file a counterclaim against Pisciotta, accusing her of coercion, blackmail, and extortion.

 

Los Angeles Times

A federal appeals court in Philadelphia has heard arguments regarding a New Jersey law that requires businesses to pay temporary workers the same wages and benefits as full-time employees. The law, known as the Temporary Workers' Bill of Rights, aims to prevent businesses from exploiting temporary workers as a source of cheap labor. However, the law is facing a legal challenge from trade groups who argue that it violates the Dormant Commerce Clause of the U.S. Constitution. The court panel seemed unlikely to block the law, as it noted that it actually favors staffing agencies based outside of New Jersey. The trade groups claim that their members would suffer significant financial losses if out-of-state businesses stopped using their services. Despite acknowledging the potential harm to staffing firms, the court panel agreed that the state has the power to set minimum labor standards. Deputy New Jersey Attorney General Nathaniel Levy defended the law, stating that it is a policy choice that does not interfere with interstate commerce. The case is ongoing.

 

 

Reuters

The U.S. consumer financial watchdog agency has announced the creation of a public database to identify nonbank financial companies that violate consumer laws. The new regulations require nonbank financial services companies, including debt collectors, mortgage and payday lenders, and credit reporting companies, to inform the Consumer Financial Protection Bureau (CFPB) of actions taken against them. The database will be accessible online and used by state attorneys general, regulators, investors, and creditors. The first corporate registrations are expected in January 2025. "Too many American families and businesses have been harmed by repeat offenders in a rinse repeat cycle of illegal activity where bad actors see fines and penalties as just the cost of doing business," Chopra said. "The registry is going to help the CFPB and other law enforcement agencies monitor and track repeat offenders in order to better hold them accountable if they break the law."

 

Reuters

Lawyer Brian Wallach, an associate at Skadden Arps, is using his legal training to make a difference in the healthcare system and help those who are left out. Wallach's inspiring story is showcased in the award-winning documentary For Love & Life: No Ordinary Campaign, available on Amazon Prime. In an interview, Wallach emphasizes the power of lawyers to improve the government and healthcare system. He states: "All you have to do is use your legal training for good."

 

Above the Law