Keep your finger on the legal world's pulse

President Donald Trump says his administration is "going after" law firms he claims are "dishonest" and "bad for the country." Trump told Fox News host Maria Bartiromo in an interview on Sunday Morning Features: “We have a lot of law firms that we’re going to be going after, because they were very dishonest people . . . They were very, very dishonest. I could go point after point after point. And it was so bad for our country.” Last week, Trump signed an executive order suspending security clearances for employees of Seattle-founded law firm Perkins Coie, citing its diversity practices and political activities. In February, The White House suspended the active security clearances of lawyers from Covington & Burling who are working with former special counsel Jack Smith. Smith prosecuted Trump unsuccessfully on behalf of the Justice Department under the Biden administration. The American Bar Association (ABA) has warned against the “escalating governmental efforts to interfere with fair and impartial courts, the right to counsel and due process, and the freedoms of speech and association in our country.” ABA president Wiliam R. Bay said last week: “We reject the notion that the government can punish lawyers who represent certain clients or punish judges who rule certain ways . . . We cannot accept government actions that seek to tip the scales of justice in this manner.”

 

The Independent

President Donald Trump's executive orders terminating security clearances and taking other actions against lawyers at Perkins Coie and Covington & Burling may violate constitutional protections, according to legal experts interviewed by Reuters who said the manner in which the firms were targeted could contravene the U.S. Constitution's First Amendment protections against government abridgment of speech and Fifth Amendment guarantee of due process. White House spokesperson Harrison Fields said on Friday that Trump "is fulfilling his commitment to end the weaponization of government and protect the nation from partisan actors who exploit their influence."

 

Reuters

Paul Hastings has re-elected chair Frank Lopez and managing partner Sherrese Smith for another term, underscoring the firm's ambitious growth plan. Lopez said that the firm is targeting $2.5bn in revenue for the year, representing a 13% increase from 2024. He observed: “There is an ambition of really creating high expectations.”

 

Bloomberg Tax

A record number of senior lawyers have moved jobs in London so far this year as U.S. law firms continue to expand, according to data from legal recruiter Edwards Gibson.

 

Financial Times

Artificial intelligence is not replacing lawyers but is significantly transforming their work, according to the 2024 Legal Technology Survey Report by the American Bar Association (ABA). The report reveals that 13% of surveyed lawyers now consider AI mainstream, a notable increase from 4% in 2023, with 45% expecting it to become mainstream within three years. Currently, 30% of lawyers are using AI, particularly in larger firms, where 46% have adopted it. Emily Colbert from Thomson Reuters noted: “This shows that firms are taking AI seriously and understand the importance of verification and responsible implementation.” However, concerns about AI accuracy remain a barrier, with 75% of respondents citing fears of AI-generated errors. Despite these challenges, firms are increasingly using AI tools, with 52% considering ChatGPT and 26% looking at Thomson Reuters CoCounsel.

 

ABA Journal

Davis Wright Tremaine and Hogan Lovells have opted to develop their own large language models (LLMs) instead of purchasing existing solutions. The decision stems from their desire for tailored functionalities that better meet their specific needs. A representative from Davis Wright Tremaine said: "Building our own LLM allows us to have complete control over the features and capabilities." This strategic move highlights a growing trend among legal firms to invest in bespoke technology solutions, despite the higher costs associated with custom development.

 

Legal Tech Monitor

Several U.S. retailers, including Target, Amazon, and Tractor Supply, have publicly ended their diversity, equity, and inclusion (DEI) programs but continue to support certain initiatives behind the scenes. Jason C. Schwartz, an employment law partner at Gibson Dunn, noted that companies are "trying to thread the needle" between corporate values and legal risks. While some retailers have ceased specific DEI efforts, they maintain support for events and resource groups for underrepresented employees. For instance, Tractor Supply ended a DEI program aimed at increasing management diversity but assured employees that inclusivity initiatives would persist. Schwartz said that companies are "essentially picking their battles" in this evolving landscape.

 

U.S. News

Li Ka-shing's CK Hutchison Holdings has engaged law firm Paul Hastings for the sale of its ports business, marking a notable change in its advisory choices. Previously, the Hong Kong conglomerate collaborated with firms like Freshfields and Linklaters. Last week, CK Hutchison announced the $19bn sale of most of its ports, including those in Panama, to a consortium.

 

Bloomberg Law

Zachary Cunha has joined Nixon Peabody as a partner in its government investigations and white-collar defence practice. Previously, he served as the U.S. Attorney for the District of Rhode Island, where he oversaw federal prosecutors dealing with various criminal and civil litigation, including violent crime, cybercrime, civil rights, and opioids.

 

Bloomberg Law

Jeff Schrepfer has joined Clifford Chance as a partner in its corporate practice in Tokyo, focusing on complex, cross-border mergers and acquisitions in sectors such as semiconductors, energy, health and life sciences, and automotives.

 

Bloomberg Law

The Justice Department is investigating the cause of soaring egg prices, which have doubled over the past year and are sometimes absent from grocery store shelves. Eggs are one of the leading drivers of food inflation, and the investigation is in its early stages. The department has sent a letter to egg companies instructing them to preserve documents about pricing conversations with customers and competitors, as well as communications with Urner Barry, now called Expana, which tracks wholesale egg-price information. The egg industry, grocers, and analysts have attributed the high egg prices to the worst outbreak of avian flu in American history.

 

The Wall Street Journal