Keep your finger on the legal world's pulse
31st October 2024
 
THE HOT STORY
Law firms expand to meet AI demands
As generative AI gains traction, law firms are facing pressure to scale up through mergers, lateral hires, or group acquisitions to fund the technology and talent required for full AI adoption. The need to keep up with AI-driven efficiency and innovation demands large investments that smaller firms may struggle to meet independently. “The investments required to keep up with technology changes are high," said Laura Saklad of InTapp, suggesting that this is fueling the trend for mergers. Interest in combining firms is driven by more than AI. Scale helps firms attract talent, increase geographic reach, and meet rising client demands. Kent Zimmermann, a consultant on law firm mergers, points out that combining with larger firms allows smaller ones to access necessary resources for tech investments. Rising costs of legal research roles, growing nearly 13% per lawyer, also reflect firms’ preparation for GenAI integration, as reported by Thomson Reuters. However, current AI productivity gains remain limited, with most firms reporting no material gains in recent years, according to a LawVision survey. Still, experts remain optimistic about AI's potential to transform legal operations. Mark Medice of LawVision notes that firms will need new capital models and skilled staff to harness AI fully, though he believes that substantial gains will require more time for the technology to be implemented effectively and trust in its outputs to reach industry standards.
INDUSTRY
Legal community backs DePasquale in PA AG race, Sunday relies on PAC support
In Pennsylvania’s race for AG, Democrat Eugene DePasquale has emerged as a clear favorite among law firms and individual lawyers, leading substantially in campaign contributions from the legal community. DePasquale has garnered roughly $64,000 in donations from major law firms, nearly double the $31,500 raised by his Republican opponent, David Sunday. Duane Morris, a prominent Am Law 100 firm, contributed $13,000 to DePasquale and $5,000 to Sunday, while other firms like Ballard Spahr and Cohen Milstein donated $10,000 each to the Democratic candidate. Individual lawyer contributions also heavily favor DePasquale, who has received multiple five-figure donations, including $25,000 each from Grant & Eisenhofer’s Jay Eisenhofer and Richard Schiffrin. Sunday, meanwhile, has just one five-figure individual contribution. Overall, DePasquale leads in monetary contributions, with $5.6m raised compared to Sunday’s $2.8m. However, Sunday’s campaign benefits from over $10m in in-kind donations, mostly from the Commonwealth Leaders Fund, which has also provided substantial cash support. This support highlights the role of political action committees and in-kind donations in bolstering Sunday’s campaign amid his financial deficit.
Everytown's legal playbook: Cracking the PLCAA shield on gun industry
Everytown Law has released a detailed 110-page guide aimed at equipping litigators to challenge gun industry practices effectively, particularly under the constraints of the 2005 Protection of Lawful Commerce in Arms Act (PLCAA). This first-of-its-kind resource outlines the six exceptions to PLCAA’s shield for gun manufacturers and dealers, helping lawyers bring cases focused on industry accountability. Executive Director Eric Tirschwell notes that the manual will be a vital tool for attorneys in government, large law firms like Quinn Emanuel Urquhart & Sullivan and Skadden, Arps, Slate, Meagher & Flom, and smaller plaintiff-side practices. Key members of Everytown Law’s team, such as Alla Lefkowitz (formerly of the Brady Center), Janet Carter from Wilmer Cutler Pickering Hale and Dorr, and Deputy Directors Alison Barnes of Robbins Russell Englert Orseck & Untereiner and Dana Mulhauser, formerly of DOJ’s Civil Rights Division, bring considerable expertise. Everytown’s legal work has yielded significant results, including a $5m settlement with ghost gun manufacturer Polymer80, signaling the ongoing impact of litigation in curbing gun violence.
Unlocking jury insights through social media
In today’s jury selection process, online searches have become invaluable, revealing insights that questionnaires alone can’t capture. Jill Leibold of IMS Legal Strategies reports that social media posts offer a “70 to 80% confidence” gauge of potential biases, especially for jurors who may display strong emotions or conspiratorial views—traits often seen as unfavorable by the defense. Daniel Wolfe of Magna Legal Services explains that patterns of “victimization” online can signal jurors prone to punitive decisions. These insights extend beyond selection, shaping trial strategies to align with jurors’ preferences for visual storytelling or emotional appeals. While AI tools help firms process vast data, Leibold cautions that manual checks remain crucial for accuracy. However, the quick pace of voir dire often limits research time, and ethical restrictions, such as prohibiting direct juror contact, add further constraints. Temple University’s Marian Grace Braccia highlights the delicate balance attorneys must strike between effective research and respecting juror privacy, emphasizing that discretion and ethics are key in this evolving selection landscape.

 
Law
Mastering law firm bookkeeping made easy
Managing finances in a law firm can be challenging due to specific legal requirements, particularly the need to separate client funds from operating funds. Good bookkeeping is essential for compliance and financial health, as it helps avoid penalties and keeps the firm organized. When selecting a bookkeeping service, consider factors such as industry expertise, experience with small firms, knowledge of client trust accounts, and data security. Choosing the right service not only reduces risks but also provides better financial insights and allows lawyers to focus on their core activities. Ultimately, investing in professional bookkeeping support can lead to a more stable and thriving practice.
REGULATION
Bipartisan support for new merger rules
The Federal Trade Commission (FTC) has passed a new antitrust rule regarding mergers and acquisitions with a rare unanimous 5-0 vote, surprising many observers. This bipartisan decision involved both Republican commissioners, Andrew Ferguson and Melissa Holyoak, who typically oppose Chair Lina Khan's initiatives. Ferguson stated, “While I would not have included every item in the Final Rule, overall, it modernises the filing requirements to be more congruous with today's economy.” The rule aims to enhance compliance with the Hart-Scott-Rodino Act and follows months of negotiations, resulting in concessions for the Republican commissioners. The FTC plans to reinstate quicker reviews for non-problematic deals and has withdrawn from a controversial agreement with the Biden administration's labour agencies. The final rule will take effect 90 days after publication in the Federal Register. Democratic commissioner Rebecca Kelly Slaughter acknowledged the compromises made, stating, “With the unanimous support of all the commission, we can have confidence that the rule will have staying power.”
NJ AG appoints new co-director to Corruption Bureau amid high-profile Norcross case
New Jersey Attorney General Matthew Platkin has appointed former federal prosecutor Eric L. Gibson as co-director of the Corruption Bureau in the Office of Public Integrity and Accountability (OPIA). Gibson, previously a partner at Post & Schell, will work alongside current bureau chief Jeffrey J. Manis. The OPIA's Corruption Bureau is prosecuting the high-profile George Norcross criminal enterprise case, which involves significant public corruption and government fraud allegations. Gibson’s appointment marks the second recent leadership change in the AG's office, following broader restructuring efforts to bolster its prosecutorial capabilities in complex public corruption cases.
FIRMS
Boies reflects on storied legal career
David Boies, one of the most renowned trial lawyers in the U.S., will step down as chair of Boies Schiller Flexner at the end of the year. Boies’ legendary career includes high-profile cases such as defending CBS against General William Westmoreland and representing Vice President Al Gore in the 2000 presidential election dispute. Known for his meticulous preparation and courtroom skill, Boies has helped clients like American Express and Hank Greenberg secure billion-dollar outcomes. Although his work with controversial clients like Theranos and Harvey Weinstein has drawn criticism, Boies remains respected across the legal community for his integrity and intellect.
CASES
SCOTUS halts voter roll restoration in Virginia
The Supreme Court's conservative majority has upheld Virginia's recent voter registration purge aimed at removing non-U.S. citizens, a move led by Governor Glenn Youngkin’s administration. The court's decision, opposed by the three liberal justices, follows a federal judge’s finding that the purge wrongfully canceled over 1,600 registrations, potentially violating the National Voter Registration Act’s 90-day quiet period. Governor Youngkin assured that those affected can still vote through Virginia’s same-day registration, but incidents like Rina Shaw’s— a lifelong Virginian who was erroneously removed—have sparked concern. Civil rights groups argue the purge is unfounded, asserting that no evidence exists of noncitizens voting in Virginia elections, and claim the process has mistakenly impacted eligible voters.
ICE faces class-action lawsuit over bail
U.S. Immigration and Customs Enforcement (ICE) is facing a class-action lawsuit filed by Motley Rice LLC in the Eastern District of New York, seeking to address complaints regarding unreturned immigration bond payments. The lawsuit claims that ICE has failed to return funds to families who paid bail for detained individuals, even after their cases concluded. “They have taken thousands of dollars from hardworking immigrant families who deserve to have their money returned,” stated Deepak Gupta, one of the attorneys involved. The lawsuit highlights that approximately $240m has been transferred to a U.S. Treasury account for unclaimed funds, with the average bail payment being around £6,000. The case is brought on behalf of Douglas Cortez, who has yet to receive a refund for a $10,000 bond paid for his friend. Ada Salazar, another claimant, expressed hope for reimbursement, stating, “I hope to receive the money back, that is the promise they made.”
JPMorgan Chase sues customers over alleged $660k “infinite money glitch” check fraud
JPMorgan Chase has filed four federal lawsuits against businesses and individuals accused of exploiting a viral “infinite money glitch” at Chase ATMs to deposit forged checks and withdraw cash before the checks bounced. The bank alleges that these defendants, inspired by a TikTok video, used a supposed ATM glitch to steal over $660,000 collectively. Filed in federal courts across Florida, Texas, and California, the lawsuits—backed by Greenberg Traurig—seek the return of funds with interest, legal fees, and costs. Defendants include businesses like Riskboss Musiq and In & Out Appliances and individuals who allegedly took large sums through fraudulent checks.

 
Law
ING accuses American investment firm of fraud
Dutch bank ING has initiated legal action against American investment firm 777 Capital Partners, seeking the repayment of $28m loaned in 2022. The bank alleges that the firm provided misleading information to secure the loan and misused the funds. According to ING, 777 Capital Partners used the money for itself or to pay loans from other parties, rather than for the agreed collateral purchases. The case, filed in New York on October 17, also implicates the firm's founders, Steve Pasko and Josh Wander. Additionally, British investor Leadenhall Capital has filed a similar lawsuit after loaning $350m to 777 Capital, discovering that the same collateral was used for multiple loans.
Diddy faces wave of lawsuits
Tony Buzbee, the defence attorney representing multiple sexual assault claimants against Sean “Diddy” Combs, has revealed that over 400 additional potential victims have come forward. Buzbee stated: “A lot of people... the mere fact of the arrest, the indictment and the denial of bail made them feel a lot safer.” Combs is currently facing serious charges, including racketeering conspiracy and sex trafficking, and has pleaded not guilty. Buzbee has established various platforms for victims to share their experiences, leading to thousands of inquiries. He plans to file numerous lawsuits in New York, where the statute of limitations allows for previously barred claims to be revived. The latest allegations include serious accusations against Combs involving minors. Buzbee aims to ensure that each case is treated individually, stating: “Every case is different because every case occurred at a different time and place.”

 

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