Keep your finger on the legal world's pulse

Lateral partner hiring at top law firms hit its highest level in three years during the first three quarters of 2024, according to a report by recruiting firm Macrae. The report highlights 557 lateral moves in Am Law 50 firms and Magic Circle firms across key markets, including London, New York, the San Francisco Bay Area, and Washington, D.C. This figure is close to the 604 lateral hires recorded in 2021, a particularly active year. Significant growth occurred in the finance, corporate, and investment funds sectors, driven by a surge in refinancing and private credit activities. London saw 182 partner moves, exceeding previous years, particularly in corporate, finance, and intellectual property practices. Meanwhile, Silicon Valley's lateral hiring lagged, with only 40 moves, reflecting the ongoing slowdown in the tech industry. Despite this, corporate lateral hires in the Bay Area showed improvement, with 19 moves, highlighting a bright spot amid the broader market challenges. 

 

The American Lawyer

As the 2024 U.S. Presidential race tightens, corporate counsel are reevaluating their preparedness for potential election-related risks, both on Election Day and in the aftermath. Leigh Dance, founder and executive director of Global Counsel Leaders, underscores concerns ranging from disruptions at polling places to extended unrest beyond the Electoral Vote Count, highlighting the need for organizations to reassess risk management strategies. With public distrust in the electoral process growing, and studies revealing that a significant portion of Americans are nervous about potential election-related violence, Dance emphasizes the importance of companies developing practical measures such as voting policies, employee guidance, and clear communication strategies. Additionally, understanding the broader social and political landscape is key to mitigating disruptions that may arise from employee absenteeism, political tensions, or workplace disputes. Corporate counsel must also stay updated on legal developments and prepare their boards for potential exposure, ensuring the organization is equipped to handle any uncertainties around the 2024 election.

 

Corporate Counsel

Fortress Investment Group has emerged as a dominant player in the litigation funding sector, with approximately $6.6bn committed to legal assets. The firm supports law firms involved in significant mass tort cases, including those against Bayer AG and Johnson & Johnson. Jack Neumark, a managing partner at Fortress, stated: “We see where funds go. If you do something you're not supposed to do, we're gonna be upset.” Fortress also invests heavily in intellectual property, claiming to be the largest institutional investor in patents globally. Despite the potential for substantial returns, litigation funding remains a challenging field, with critics arguing it can lead to frivolous lawsuits. Neumark expressed concern over proposed regulations, stating: “I just worry it distracts the judge or delays the case.” As the industry evolves, Fortress continues to navigate the complexities of litigation finance while maintaining a close watch on its investments.

 

Bloomberg Tax

Howard Rosenberg, partner and head of talent intelligence at Baretz+Brunelle, explores the emerging concept of "talent finance," where law firms secure external funding to compete for top legal talent. As compensation packages for high-profile lateral hires soar, even mid-size firms are feeling the pressure to attract top talent. With the legal sector becoming a prime target for private equity, investors are eyeing the talent pipeline as a new avenue for growth. Rosenberg argues that flexible capital will soon become a key tool for law firms, allowing them to compete more effectively in the ongoing war for talent. 4o

 

New York Law Journal

Mariia Eroshin, managing director of family office at Certuity, emphasizes that with the increased compensation of law firm partnerships comes greater financial complexity. In her article, she outlines key financial strategies for new partners to secure their wealth long-term. Eroshin advises partners to create comprehensive financial plans, from cash management for partnership buy-ins to developing a tax strategy based on K-1 forms and managing quarterly estimates. She also highlights the importance of estate planning, investment diversification, net worth tracking, risk mitigation, and legacy planning.

 

The American Lawyer

The Texas Lawyer celebrated top legal professionals and firms during its 2024 Texas Legal Awards on Tuesday evening in Dallas. Jennifer Truelove of McKool Smith won the prestigious Attorney of the Year award, recognized for securing a $1.4bn settlement with Meta and achieving over $1bn in patent infringement verdicts. Kirkland & Ellis was named Law Firm of the Year. The event, held at the Arts District Mansion, honored numerous legal professionals across categories, including Frank Branson and David Elrod for Lifetime Achievement, and Todd Reed as Managing Partner of the Year. Additionally, 20 attorneys under 40 were recognized in the On the Rise category.

 

The Texas Lawyer

In the evolving legal landscape, lawyers must effectively communicate and understand artificial intelligence (AI) to provide competent representation. Kenneth N. Rashbaum, a partner at Barton, emphasizes that lawyers need not be tech experts but should know the right questions to ask regarding AI tools. The American Bar Association's Model Rule 1 mandates that lawyers stay informed about technology's benefits and risks. Key considerations include the design objective of AI tools, the type of AI involved, and the quality of the data used for training. Rashbaum notes: "This navigational aid to explaining and arguing for or against AI tools... will evolve with changes in the relevant tools and technologies." As AI continues to impact legal practices, understanding these fundamentals is crucial for advising clients effectively.

 

Bloomberg Law

In a recent case in Saratoga County, New York, Judge Jonathan Schopf scrutinized the reliability of Microsoft Copilot, a generative artificial intelligence (AI) chatbot, after an expert witness used it to verify lost-value calculations. Schopf asked: “Are your calculations reliable enough for use in court?,” to which the chatbot responded that data must meet strict standards and should be verified by experts. The judge's tests revealed inconsistent outputs for a financial query, leading him to conclude that lawyers must disclose AI usage and the evidence it generates. Schopf stated: “The son failed to prove that his aunt breached her fiduciary duties,” highlighting the complexities of integrating AI into legal proceedings. Eric Goldman, an internet law expert, emphasized that it is illogical for expert witnesses to rely on AI for their specialized knowledge.

 

ABA Journal

Meta, the parent company of Facebook, is facing lawsuits from U.S. states alleging that its platforms contribute to mental health issues among teenagers. U.S. District Judge Yvonne Gonzalez Rogers ruled that the lawsuits, which involve over 30 states, can proceed despite some limitations imposed by federal law. The judge noted that the states provided sufficient detail regarding misleading statements made by Meta. Lawyers for the plaintiffs hailed the ruling as “a significant victory for young people nationwide who have been negatively impacted by addictive and harmful social media platforms.” The states are seeking court orders against Meta's practices and unspecified monetary damages.

 

The Globe and Mail

The class-action lawsuit against Amgen Inc. highlights the critical need for corporate transparency in tax and transfer pricing practices. Allegations suggest that Amgen misled investors by not disclosing the IRS's demand for $10.7bn in unpaid taxes and penalties. A federal judge recently denied Amgen's attempt to dismiss the case, which stems from claims that the company obscured the extent of its tax liabilities in SEC filings. As Rezan Ökten, a partner at Dentons, notes, "By being transparent—but in moderation—companies can protect their financial interests." The case reflects a broader trend of increased scrutiny from tax authorities globally, particularly regarding multinational enterprises' tax strategies. Companies must balance the need for transparency with the potential risks of overstating tax liabilities, which could damage their value. The case is Roofers Loc. No. 149 Pension Fund v. Amgen Inc., 2024 BL 343743, S.D.N.Y., 23 Civ. 2138 (JPC), 9/30/24.

 

Bloomberg Law

U.S. District Judge Reed O'Connor has said Boeing and the U.S. Justice Department must detail the impact of diversity and inclusion policies on the selection of an independent monitor before he decides whether to accept the planemaker's plea deal. O'Connor is considering whether to approve Boeing's agreement to plead guilty to conspiring to defraud regulators. The deal would include oversight for three years by an independent monitor. A DOJ spokesperson said the government "will comply with the judge’s order and respond before the court’s deadline." Boeing did not immediately comment. O'Connor also said he wants Boeing to detail how its existing diversity, equity and inclusion policies "are used in its current compliance and ethics efforts."

 

Reuters

Former employees of Party City have initiated a class action lawsuit against the company, alleging violations of worker protection laws during mass layoffs that occurred on September 17th 2024. The lawsuit, Sonia Agostino, on behalf of herself and all others similarly situate vs. Party City Holdings, claims that the corporation failed to provide the required advance notice under the WARN Act and the NJ WARN Act. The plaintiffs assert they were informed of their termination on the same day they were laid off, without the mandated 60 or 90 days' notice. They are seeking damages equivalent to 90 days' pay and liquidated damages of 200% of their owed wages under the New Jersey Wage Payment Law.

 

New Jersey Herald

Gerry Williams has been appointed as the co-U.S. managing partner of DLA Piper, making history as the first Black firmwide managing partner at the firm. Frank Ryan, global co-chair of DLA Piper, praised Williams, said: "He is an innovative, collaborative leader committed to serving our clients, developing our people, and giving back to our communities." Williams is a member of DLA's global board and serves on its U.S. executive and policy committees, as well as being vice chair of the private equity group in the Southeast. His leadership is expected to guide the firm as the legal industry continues to evolve.

 

Above the Law

Roger Browdy, longtime intellectual property lawyer and owner of the D.C.-based Browdy and Neimark, has shuttered the 72-year-old boutique firm founded by his father. Browdy and three other lawyers from the firm have joined fully distributed firm FisherBroyles, attracted by the opportunity to focus on their practice without the administrative burdens of running a law firm. Browdy, nearing retirement, cited the flexibility to work from anywhere and increased compensation as key reasons for the move. FisherBroyles’ unique compensation model allows partners to keep up to 80% of their billings, compared to 33% at traditional firms.

 

The National Law Journal