Keep your finger on the legal world's pulse

The U.S. Treasury Department has said it would not enforce the Biden-era Corporate Transparency Act, an anti-money laundering law that obliges business entities to disclose the identities of their real beneficial owners. The Trump administration says the act - which has faced repeated legal challenges - is burdensome to low-risk entities. "Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses," it said, adding that it intended to issue a rule to narrow the scope of the act to foreign reporting companies.

 

Reuters

The average award against a corporate defendant in cases brought in the U.S. rose to a record $65.7m last year, up from $41.7m in 2023, data from LexisNexis shows. 

 

Financial Times

Paul Weiss will implement a mandatory four-day office attendance policy starting April 30, moving on from its previous three-day requirement. Its decision aligns with similar moves by other major firms such as Latham, Weil, and Skadden. A representative for the firm explained: "By being physically present together, we better develop our talent and ensure that we continue to deliver the level of extraordinary service that our clients expect." Employees will still have the option to work remotely on Fridays.

 

Law

Fired prosecutors and other government lawyers who have left the Trump administration in controversy in recent weeks face a tough job market amid Big Law firms' unease with hiring politically controversial figures. Law reports that, in general, firms are less likely now to hire a partner who is a lightning rod for the administration, according to recruiters, and they also have their pick of top talent, as government lawyers flood the employment market.

 

Law

The Consumer Finance Protection Bureau (CFPB) has dismissed several enforcement actions against major companies, including Capital One and Rocket Homes, following a change in leadership. The suits were all filed under the agency’s previous director, Rohit Chopra, who President Donald Trump recently fired. Trump has made claims about the CFPB being “set up to destroy people,” but the agency's supporters say that it provides crucial oversight and protects consumers from being vulnerable to predatory business practices.

 

The Baltimore Sun

OregonLive.com

Washingtonpost.com

Silicon Valley Bank's former parent, now known as SVB Financial Trust, may pursue a lawsuit to recover $1.93bn in deposits seized by the Federal Deposit Insurance Corporation (FDIC) following the bank's collapse in March 2023. U.S. District Judge Beth Labson Freeman ruled that the former parent sufficiently alleged that the FDIC maintained control over the deposits, despite the claims being described as "vanishingly thin."

 

Reuters

Tulsi Gabbard, the Director of National Intelligence, has announced the termination of over 100 employees from across the U.S. intelligence community for engaging in sexually explicit conversations on a secure government chat platform. Gabbard described their actions as “an egregious violation of trust” and emphasized the need for professionalism. She issued a directive mandating the identification of those involved in the “obscene, pornographic, and sexually explicit” chatrooms by Friday. Gabbard said: “We will continue to clean house,” as she indicated ongoing efforts to address misconduct within the agency.

 

U.S. News

Meta has fired 20 workers for leaking information to the media. The round of dismissals follows a series of reports based on Meta CEO Mark Zuckerberg's meetings with employees. In one meeting, Zuckerberg told employees he would no longer be forthcoming with information because "we try to be really open and then everything I say leaks. It sucks." A Meta spokesperson said: "We tell employees when they join the company, and we offer periodic reminders, that it is against our policies to leak internal information, no matter the intent . . . We recently conducted an investigation that resulted in roughly 20 employees being terminated for sharing confidential information outside the company, and we expect there will be more."

 

Barron's

Paul Hastings has announced the appointment of Sarah Gagan as co-chair of its newly established Technology Transactions practice in Boston. Previously a partner at Latham & Watkins, Gagan brings extensive experience in technology transactions, advising companies across various sectors, including fintech and artificial intelligence. Paul Hastings chair Frank Lopez said: “Sarah is a market-leader and integral to the launch of our elite technology transactions global platform.” Gagan's addition follows the recent hiring of Amir Ghavi, who will co-chair the group with her. Gagan has been recognised as a leader in her field by Chambers USA and has represented numerous Fortune 100 companies and private equity firms.

 

LawFuel

Michael Pomeroy has joined Cozen O'Connor as a member of its intellectual property practice in Dallas, enhancing the firm's capabilities in patent litigation. His expertise encompasses all stages of patent litigation, including licensing, infringement analysis, and inter partes review proceedings. Pomeroy previously worked at Carter Arnett.

 

Bloomberg Law

Senior executives at major consultancy firms have been meeting with officials from the Trump administration to defend their contracts amidst a cost-cutting exercise being run by the General Services Administration (GSA). Federal agencies have been asked to list and justify consulting contracts from the 10 highest-paid companies, including Booz Allen, Accenture ACN, Guidehouse and others, that the agencies intend to keep. The Wall Street Journal suggests contracts providing market research and analysis or supporting work on topics the Trump administration has deprioritized may be the first to get cut. Firms may be asked to make pricing concessions on existing contracts. However, people familiar with the matter said Josh Gruenbaum, the Federal Acquisition Service commissioner within the GSA, has told executives that they could make up for the cuts by also suggesting new projects or services to the government that could offer a demonstrable return-on-investment.

 

The Wall Street Journal

Private equity investment in the U.K. legal sector reached a record £534m ($676m) in 2024, according to research by Acquira Professional Services. This marks a 42% increase from £377m in 2023, contributing to a total of £1.2bn over the past five years. Jeff Zindani, managing director of Acquira, said: "In a competitive legal market, in which digital transformation is becoming vital to service delivery, law firms are seeking ways to scale their businesses." Despite the growth, investment remains modest compared to the overall market size. Jonathan Watmough, founder of HelpingLawyersThrive, highlighted the challenges PE firms face, noting that "PE needs drumroll, repetitive, institutional income to make their model work." While resistance to PE investment persists, the perception of its attractiveness for growth has improved significantly. Acquira anticipates continued activity in the sector, particularly following Inflexion's acquisition of DWF, which saw a 14% increase in revenue in its first year under new ownership.

 

The Global Legal Post