Keep your finger on the legal world's pulse
27th February 2025
 
THE HOT STORY
White House strips security clearances at elite law firm
The White House is suspending the active security clearances of lawyers from Covington & Burling who are working with former special counsel Jack Smith. Smith prosecuted Donald Trump unsuccessfully on behalf of the Justice Department under the Biden administration. According to a White House memo, all executive agencies are to suspend the clearances that may be used by Covington lawyers in private practice as the White House launches a “review and determination of their roles and responsibilities, if any, in the weaponization of the judicial process.” Washington national security attorney Bradley Moss, a law partner of Mark Zaid, who also has had his security clearance revoked, said in response to the White House’s move: “This is nothing less than a petty and vindictive attack on the legal profession, and particularly the ability of a select group of cleared lawyers to defend the interests of officials across the intelligence community,” adding “The bigger question is, how far is he going to take this war against the legal profession, and against anyone who stands for the rule of law?”
TECHNOLOGY
Lawyers in Walmart lawsuit sued over fake, AI-generated cases
A federal judge has ruled that three lawyers who are suing Walmart in a personal injury lawsuit must pay fines totaling $5,000 for citing fake cases generated by artificial intelligence in a court filing. U.S. District Judge Kelly Rankin in Wyoming said the lawyers - two from national law firm Morgan & Morgan and one from a smaller firm - had an ethical obligation to ensure that the cases they cited were real. "As attorneys transition to the world of AI, the duty to check their sources and make a reasonable inquiry into existing law remains unchanged," Rankin wrote. Walmart denies the allegations in the underlying lawsuit, which accuses the retailer of selling a defective hoverboard toy that allegedly caught fire and burned down the plaintiffs' house.
LAWSUITS
Lawsuit that could dismantle disability protections prompts outcry
Republican attorneys general from 17 states, led by Texas Attorney General Ken Paxton, have initiated a lawsuit challenging federal protections for disabled individuals, particularly targeting the inclusion of gender dysphoria as a protected disability under Section 504 of the Rehabilitation Act of 1973. Advocates, including Charlotte Cravins, a Louisiana attorney and mother of a disabled child, have expressed their concern. The lawsuit could potentially undermine long-standing protections for various disabilities, affecting access to essential services in schools and workplaces. While some AGs, like Georgia's Chris Carr, say that the lawsuit does not threaten existing protections, constitutional law experts like Erwin Chemerinsky warn that it seeks to declare Section 504 unconstitutional. As public backlash grows, some AGs are reconsidering their involvement, with South Carolina's Alan Wilson indicating a possible withdrawal from the lawsuit.
Fairview faces class action lawsuit over data breach
A class action lawsuit has been filed against Fairview, a borough located in Bergen County in New Jersey, following a data breach in June 2023 that exposed thousands to identity theft. The lawsuit, initiated by Ali Meahrez, a local man, alleges that hackers accessed sensitive personal information, including names, dates of birth, and Social Security numbers. Meahrez reported experiencing a surge in spam communications, leading to emotional distress. The borough's notice confirmed "suspicious activity" was detected between June 13 and June 21, 2023, but Meahrez claims he was not informed until October 2024, over four months later. The lawsuit accuses Fairview of negligence in protecting personal data and seeks damages, attorney costs, and improvements to data security measures.
King & Spalding dodges diversity lawsuit
King & Spalding has successfully avoided a lawsuit from former University of Baltimore School of Law student Sarah Spitalnick, who challenged the firm's diversity fellowship. The U.S. District Court for the District of Maryland dismissed her case, saying she failed to demonstrate any “real intent” to apply for the position in question. Judge James K. Bredar noted that Spitalnick lacked standing, as she could not establish an injury-in-fact, observing: “The result of all this is that plaintiff faces an uphill climb to plead an actual or imminent injury.”
FIRMS
Dechert opens doors for law grads affected by hiring freeze
Dechert has expanded the Dechert Impact Fellowship Program to law graduates whose federal job offers were rescinded due to the Trump administration's hiring freeze. The initiative, which began in 2024, allows fellows to work with leading pro bono organizations, enhancing their legal skills while serving underserved communities. Dave Forti, co-chair of Dechert, said: “We are proud to expand the Dechert Impact Fellowship Program to include recent graduates impacted by the federal hiring freeze.” The 2025 program will commence in October, continuing Dechert's commitment to pro bono work, which has earned the firm top rankings in The American Lawyer's 2024 Pro Bono Scorecard.
Quinn Emanuel's fees hit $3,000
Partners at Quinn Emanuel Urquhart & Sullivan are charging up to $3,000 per hour, according to court filings reported by Reuters. The law firm's billing rates range from $1,860 to $3,000 for partners, $1,775 to $2,725 for counsel, and $1,035 to $1,665 for associates. “Quinn Emanuel’s $3,000 top rate marks a milestone for leading U.S. law firms as lawyers’ hourly fees continue to soar,” Reuters reported. “Law firms routinely raise their rates each year, and top rates at some of the largest U.S. firms have pushed past $2,500 an hour or higher in recent years, court records show.”
APPOINTMENTS
Mayer Brown welcomes former Sidley Austin litigator
Mayer Brown has announced the appointment of Frank Favia as a partner in its global Litigation & Dispute Resolution practice in Chicago. Favia, previously co-leader of Sidley Austin's Private Equity Litigation practice, brings extensive experience in M&A-related disputes and complex litigation. Michael Olsen, leader of Mayer Brown's Litigation & Dispute Resolution practice, expressed enthusiasm for Favia's unique skill set, saying: “Frank's extensive experience in M&A-related disputes . . . will significantly enhance our preeminent team.” Joanna Horsnail, managing partner of the firm's Chicago office, noted that Favia's expertise aligns perfectly with its growth strategy.
Jones Day strengthens Hong Kong team
Capital markets lawyers Ming Kong and Dominic Sze have joined Jones Day's financial markets practice in Hong Kong. Ming Kong was previously a partner at Kirkland & Ellis and Dominic Sze left the boutique firm YTL.

 
Law
DIVERSITY, EQUITY & INCLUSION
Trump asks Apple to dump DEI policies
President Donald Trump has intensified his campaign against diversity, equity, and inclusion (DEI) policies, urging Apple to eliminate the initiatives entirely. His comments on his Truth Social platform came a day after Apple investors rejected a proposal to end DEI efforts during the company's annual meeting. Apple has said it had an active oversight effort to avoid legal risks and that the proposal inappropriately restricted management. Apple operates programs such as a racial justice initiative that supports historically Black colleges and universities in the U.S. 
REGULATION
FTC vows to block illegal mergers
Federal Trade Commission (FTC) Chair Andrew Ferguson has announced that the agency will continue to “vigorously” pursue legal action against illegal mergers. He highlighted the bipartisan support for merger challenges during the Biden administration, which successfully blocked significant deals such as the proposed Kroger-Albertsons tie-up. Mr. Ferguson, who was appointed by President Donald Trump, also mentioned that the FTC will maintain the stricter merger guidelines established under the previous administration. His remarks were made at an event hosted by the Coalition for App Fairness, which advocates against Big Tech monopolies.
OTHER
Overdose deaths plummet in U.S.
According to preliminary data from the U.S. Centers for Disease Control and Prevention (CDC), nearly 87,000 Americans died from drug overdoses in the year ending September 2024, marking a 24% decrease from the previous year. The decline represents the lowest number of overdose deaths since June 2020. Allison Arwady, Director of CDC's National Center for Injury Prevention and Control, said: "It is unprecedented to see predicted overdose deaths drop by more than 27,000 over a single year," as she underscored the significant impact of ongoing efforts to combat the opioid crisis. The CDC report indicates that deaths involving opioids fell to approximately 61,393, while those related to synthetic opioids, including fentanyl, decreased to about 55,126. The reduction in fatalities is a hopeful sign amid a decade-long epidemic that has claimed over 450,000 lives.

 

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