Keep your finger on the legal world's pulse
11th July 2025
 
THE HOT STORY
Trump's nominee faces serious allegations
U.S. Senate Democrats have released internal Justice Department communications that support allegations made by whistleblower Erez Reuveni against President Trump's judicial nominee, Emil Bove. Reuveni claimed that Bove suggested department lawyers could ignore court orders to facilitate mass deportations. During his confirmation hearing, Bove denied these allegations, stating: "I am not anybody's henchman." However, the released texts indicate that Bove's comments were discussed among colleagues, raising concerns about the Justice Department's compliance with court orders. Senator Dick Durbin expressed his worries, stating that the documents "underscored his deep concerns about Bove's nomination" and revealed that the DOJ "misled a federal court and disregarded a court order." The situation continues to develop as the Senate evaluates Bove's nomination.
ARTIFICIAL INTELLIGENCE
Legal teams rely on ChatGPT tools
A new Axiom survey shows that 66% of in-house legal teams primarily use general-purpose AI like ChatGPT, while only 7–17% use legal-specific tools. Based on 600 responses from lawyers across eight countries, the report highlights strong interest in generative AI but limited structured implementation. ChatGPT leads usage (42%), followed by Microsoft Copilot (25%), Google Gemini (20%), and Anthropic Claude (15%). However, just 38% of teams have AI policies, and fewer have formal training or privacy protocols. Axiom’s data suggests legal departments are eager but underprepared. “An alarming proportion of AI use appears unstructured,” the report notes.
Kleiner Perkins invests in AI startups for high-paying professions
Kleiner Perkins is investing in AI startups focused on creating digital assistants for high-paying professions, including doctors and lawyers. Partner Mamoon Hamid highlighted the potential of AI to transform these industries by enhancing productivity and decision-making. This investment strategy reflects a broader trend of venture capital interest in AI technologies that can significantly impact professional services, including the legal sector.
AI lawsuits threaten creative future
Nick Schneider from Eckert Seamans warns that recent lawsuits against AI media-generators could jeopardise the technology's economic viability and undermine essential copyright principles. Major copyright holders, including Walt Disney Co. and Universal Studios Inc., have filed lawsuits claiming that AI media-generators are profiting from their copyrighted works, amounting to hundreds of millions of pounds. Schneider notes: "If copyright creators succeed in their lawsuits, the profitability of AI media-generators could crater." He argues that while some aspects of the lawsuits may have merit, the expansive theories proposed could stifle innovation and limit creative expression. Schneider suggests that a collaborative approach, similar to the music industry's response to piracy, could provide a solution that benefits all parties involved.
LEGAL TECH
LegalTech Lab launches Law Firm 2.0
The LegalTech Lab has launched an innovative accelerator aimed at creating Law Firm 2.0, a new generation of AI-driven legal service providers. This initiative seeks to disrupt the traditional billable hour model by offering fixed-fee services and utilising AI to enhance efficiency. With over $1bn invested in legaltech startups in 2025, the market is ripe for transformation. The accelerator supports startups developing AI tools for various legal needs, from immigration to estate planning, ensuring that legal services become more accessible and affordable for individuals and small businesses. Legal AI is not intended to replace lawyers but to eliminate inefficiencies, allowing them to focus on higher-value tasks. 
Harvey expands with Indian base
Legal AI firm Harvey will open a new office in Bengaluru later this year, aiming to bolster its engineering, sales, and operations teams. The move supports Harvey’s strategic push for global expansion and enhanced client delivery. The India hub is expected to fuel innovation and strengthen its competitive position in the legal tech market. At the same time, Law.com explores A&O Shearman’s revenue-sharing agreement with Harvey, signaling AI’s deepening impact on the legal services sector and its ongoing disruption of traditional models.
Eudia acquires Johnson Hana ALSP
Eudia has acquired alternative legal services provider Johnson Hana, integrating 300+ legal professionals into its AI-centric, in-house-focused business. Eudia described the move as creating “an entirely new type of company” that blends human expertise with AI to transform legal workflows. While the approach mirrors models like Elevate—combining AI tools and human process teams—it marks a notable consolidation. Johnson Hana, founded by former barrister Dan Fox, brings clients such as Citibank, Coca-Cola, and TikTok. Eudia’s focus on agentic systems and tailored AI workflows aligns with its ambition to reshape legal service delivery through hybrid human-AI capabilities.
HelloPrenup secures investment from LegalTech Fund
HelloPrenup, a startup specializing in prenuptial agreements, has announced an investment from the LegalTech Fund. The funding will be used to expand HelloPrenup's services across all 50 states, integrate artificial intelligence into its platform, and pursue strategic partnerships. This development highlights the growing interest in leveraging technology to streamline legal processes and enhance accessibility for clients seeking prenuptial agreements.
FIRMS
Latham & Watkins tops M&A rankings
Latham & Watkins has emerged as the leading M&A dealmaker in the first half of 2025, surpassing Kirkland & Ellis as corporate transactions gain momentum. Despite initial expectations for a spike in M&A deals that did not materialise in the first quarter, global deal volume has increased by nearly 20% compared to the previous year. Notably, Meta Platforms' $14bn investment in Scale AI has significantly contributed to this surge. Mahira Dayal, a reporter for Bloomberg Law, highlighted that "deals involving AI have been driving a lot of the activity" recently. The podcast episode of On The Merits features a discussion on the reasons behind this rebound in the deals market.
Kirkland leads restructuring game
In the first half of the year, Kirkland & Ellis has solidified its position as the leading restructuring firm, advising on eight of the largest Chapter 11 filings. The overall number of mega cases filed decreased by 15% compared to the previous year, yet Kirkland continued to excel. Competitors like Sidley Austin and Paul Weiss also performed well, each advising on four mega cases. Stephen Hessler of Sidley noted that their increased market share reflects a focus on company-side platforms, while Paul Basta from Paul Weiss emphasised their comprehensive approach to various restructuring challenges. The restructuring landscape is evolving, with a notable rise in out-of-court liability management transactions.
LAWSUITS
Federal judge blocks Trump's birthright citizenship order
A federal judge in New Hampshire has certified a class action lawsuit challenging President Trump's executive order that seeks to end birthright citizenship. The judge issued a preliminary injunction, effectively pausing the order's implementation. This legal action includes all children potentially affected by the order, marking a significant legal challenge to the administration's immigration policy. The case could have broad implications for immigration law and constitutional interpretations of citizenship rights.
Court backs New York's gun law
The 2nd U.S. Circuit Court of Appeals has upheld a New York public nuisance law that allows civil lawsuits against the gun industry for violence linked to their products. The law, signed by Governor Andrew Cuomo in July 2021, permits state and local officials, as well as the public, to sue manufacturers and dealers for endangering safety through firearm sales. Circuit Judge Eunice Lee stated that the law is not preempted by the federal Protection of Lawful Commerce in Arms Act, emphasising that Congress intended to maintain "at least some causes of action" for violations of state laws. The ruling supports a previous decision by U.S. District Judge Mae D'Agostino and highlights the ongoing legal challenges faced by the gun industry. The case is National Shooting Sports Foundation Inc et al v James, 2nd U.S. Circuit Court of Appeals, No. 22-1374.
DSW fights back against music giants
DSW Shoe Warehouse Inc. has filed a lawsuit against Sony Music Entertainment and UMG Recordings Inc., claiming that the labels are attempting to “pull the rug out” from under them by threatening copyright litigation over social media posts that include music samples. The demand letters from the labels assert that DSW's use of these samples constitutes copyright infringement due to their business operations. DSW argues that businesses were not previously excluded from using music on platforms like Instagram and TikTok, as stated in their filing for a declaratory judgment of no copyright infringement.
EMPLOYMENT LAW
DOJ investigates Minnesota for potential discriminatory hiring practices
The Department of Justice has initiated an investigation into the state of Minnesota, including its Department of Human Services, to assess whether race and sex-based discrimination has occurred in its hiring practices. This investigation underscores the DOJ's commitment to enforcing federal anti-discrimination laws and could lead to significant legal and policy changes within Minnesota's employment framework, affecting public sector hiring practices.
CASES
Appeals court upholds verdict against Trump in Carroll case
A federal appeals court has upheld a jury verdict finding former President Trump guilty of sexually abusing and defaming writer E. Jean Carroll. The three-judge panel affirmed the district court's decision, rejecting Trump's appeal. This ruling maintains the legal victory for Carroll, who accused Trump of defamation following her allegations of sexual assault. The case has significant implications for defamation law and the accountability of public figures.

 

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