Keep your finger on the legal world's pulse

Law firm promotions are often celebrated, showcasing growth and the elevation of top talent. However, the rise of salaried or non-equity partners, especially in Big Law, is causing concern among clients about transparency in billing practices. Firms like Kirkland & Ellis, which promoted 200 attorneys to partner in 2024, are part of a growing trend where many promoted partners lack equity ownership or voting rights. While these promotions bring recognition, higher pay, and increased responsibilities for the individuals, clients are questioning if these titles justify the same rates as equity partners. The trend is raising fears of inflated legal bills without a commensurate increase in senior expertise. As more firms adopt two-tier partnership models, clients are becoming wary of being billed at premium rates by less experienced lawyers. This shift is testing the trust between law firms and their clients, with a growing demand for more detailed billing transparency and clearer delineation of who is performing the work.

 

Law

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A&O Shearman has introduced a new three-tier modified lockstep compensation system for its partners, moving towards an all-equity partnership model. This shift aims to balance rewarding exceptional talent while fostering collaboration among the firm's approximately 800 partners. The top tier, known as “super,” is reserved for the firm's highest performers, referred to as “highflyers.” A spokesperson for A&O Shearman stated that the new remuneration approach is designed to enhance competitiveness in attracting and retaining top talent. This change comes amid a broader trend in Big Law, where many firms are adopting salaried partner tiers. The firm is also undergoing significant changes, including a planned reduction of around 10% in their equity partnership and the closure of their Johannesburg office, which has drawn criticism.

 

LawFuel

Elon Musk has committed at least $70m to support Donald Trump's presidential campaign and is now offering $1m daily to voters who sign his political action committee's petition. This initiative has raised significant legal concerns, with experts like Brendan Fischer warning that linking cash handouts to voter registration may violate election laws. Pennsylvania Gov. Josh Shapiro expressed his worries, stating: “I think there are real questions with how he is spending money in this race.” The legality of Musk's approach is under scrutiny, particularly as it requires voters to be registered to qualify for the cash. Election law professors have noted that while paying for petition signatures may not be illegal, conditioning payments on voter registration could cross legal boundaries.

 

Missoulian

MTStandard.com

OregonLive.com

BDO USA has partnered with Everlaw, a cloud-native investigation and litigation platform, to enhance e-discovery and litigation support globally. This collaboration aims to provide legal departments and law firms worldwide with advanced tools to navigate complex data landscapes effectively. “Our clients depend on us to help them uncover relevant facts for litigation, regulatory, and compliance matters – separating the signal from the noise", said BDO E-Discovery Managed Services team principal and leader Daniel Gold. “Everlaw is an ideal addition to our suite of tools, permitting BDO to efficiently tackle the toughest data challenges and deliver optimal outcomes for our clients."

 

International Accounting Bulletin

Once on track for Olympic badminton glory, Tom Dunlop pivoted to a successful legal career and ultimately became a product development leader in legal tech. After 15 years in law, Dunlop founded Summize in 2018, aiming to simplify contract review and creation. Inspired by his time as global legal director at UserZoom and other tech firms, Dunlop realized the inefficiencies of traditional legal processes. In an interview with Corporate Counsel, Dunlop reflected on his entrepreneurial path, explaining how the pain of manually reviewing contracts sparked the idea for Summize.

 

Corporate Counsel

The Internet Archive, a nonprofit dedicated to providing “universal access to all knowledge,” recently suffered a significant data breach, compromising the information of over 31m users. The attack, which was reported on October 9, led to the temporary shutdown of the website after sensitive data, including email addresses and encrypted passwords, was leaked. Brewster Kahle, the founder of the Internet Archive, stated: “We're taking a cautious, deliberate approach to rebuild and strengthen our defenses.” The organisation is working diligently to restore its services securely, with some expected to resume in read-only mode. Kahle expressed concerns about a potential trend in cyberattacks on libraries, referencing recent incidents affecting other institutions. The Internet Archive has faced ongoing legal challenges regarding its digitisation efforts, which could threaten its future.

 

NPR / National Public Radio

U.S. District Judge Reed O'Connor has faced scrutiny for his financial ties to Tesla amid Elon Musk's lawsuit against Media Matters. O'Connor, who invested between £15,001 and £50,000 in Tesla in 2023, had made several transactions prior to accepting the case in November. Legal ethics experts, including Richard Painter from the University of Minnesota Law School, have called for O'Connor's recusal, citing potential financial benefits from the lawsuit's outcome. Painter stated, “The relevant question is whether the Tesla stock price could be substantially affected by the outcome of this case.” Despite these concerns, O'Connor dismissed calls for recusal, asserting that Tesla has no direct financial interest in the case. The controversy has raised questions about "judge shopping" in Texas, with critics highlighting the implications for judicial integrity.

 

NPR / National Public Radio

Los Angeles has secured a $35m settlement from Monsanto, along with two affiliated companies, Pharmacia LLC and Solutia, for producing toxic polychlorinated biphenyls (PCBs) that contaminated local waterways. The lawsuit, filed by Los Angeles City Attorney Hydee Feldstein Soto, accused Monsanto of knowingly producing harmful chemicals for decades. PCBs, which were banned in 1979, have been linked to serious health risks and environmental damage. The funds will be used for compensatory restitution and waterway remediation. Monsanto, now part of Bayer, denied liability but agreed to the settlement, continuing to defend similar claims in other cases.

 

The Recorder

The Texas Supreme Court has declined to review a whistleblower lawsuit filed by Jerry Lynn Phillips, a former assistant district attorney, against District Attorney Ori White of the 83rd Judicial District. Phillips alleged wrongful termination after raising concerns about improper legal actions, including a case involving the Brewster County attorney’s grandson. The appellate court ruled Phillips missed the 90-day deadline to file by one day, leading to the lawsuit's dismissal. Phillips and his attorney, Jodi Cole, expressed disappointment, warning the ruling may deter future whistleblowers in rural communities from coming forward. 

 

Texas Lawyer

Garret O'Boyle, a suspended FBI agent, is challenging his indefinite suspension and the revocation of his security clearance, claiming retaliation for whistleblowing. During a recent hearing, a three-judge panel from the U.S. Court of Appeals for the D.C. Circuit expressed doubts about their jurisdiction to hear the case. O'Boyle's clearance was revoked following allegations of leaking information to the media, as noted in a congressional report. The court's skepticism raises questions about the future of O'Boyle's legal battle against the FBI.

 

Bloomberg Law

The U.S. Supreme Court appears closely split on whether trucker Douglas Horn can use the federal Racketeer Influenced and Corrupt Organization Act (RICO) to sue cannabis companies over claims that a CBD product falsely advertised as THC-free led to his firing. During oral arguments, justices debated whether RICO allows civil claims for economic damages tied to personal injury. While some justices expressed skepticism about limiting RICO's reach, others, including Chief Justice John Roberts and Justice Brett Kavanaugh, raised concerns about dramatically expanding tort claims under the statute. A ruling is expected by July 2024.

 

The National Law Journal

Gurbir Grewal has joined Milbank as a partner in its litigation and arbitration group in New York, as announced by the firm on Tuesday. Previously, Grewal served as the director of the Securities and Exchange Commission's Enforcement Division, where he was responsible for overseeing all investigations, enforcement actions, and litigation conducted by the agency. This strategic move is expected to enhance Milbank's capabilities in the legal sector.

 

Bloomberg Law