Keep your finger on the legal world's pulse
6th February 2026
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THE HOT STORY
Claude legal plugin jolts market
Anthropic's launch of its legal plugin for Claude Cowork has triggered a significant market downturn, with major legal tech companies like Thomson Reuters and RELX losing nearly 20% of their value. Jefferies Group labeled this event the “SaaSpocalypse,” highlighting a critical shift in the legal tech landscape. Bob Ambrogi noted that this marks the first instance of a foundation model company directly offering a legal workflow product, challenging existing business models. Harvey, valued at $8bn, faces existential threats as its primary supplier becomes a competitor. Cecilia Ziniti, founder of GC AI, emphasized that genuine value in legal tech lies in specialized software, not just AI tools. The market is now questioning whether legacy providers can maintain premium pricing amidst increasing competition from foundation model companies.
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POLITICAL
New tax bill targets presidential lawsuits
In response to President Donald Trump's $10bn lawsuit against the IRS and Treasury, House Ways and Means Committee member Mike Thompson (D-CA) plans to introduce the Prevent Presidential Profiteering Act. This legislation aims to impose a 100% tax on any civil judgment or settlement awarded to a sitting president or their immediate family if the lawsuit was filed during their term. Mr. Thompson criticized Mr. Trump, saying: “He continues to use the Office of the Presidency for personal gain.” The lawsuit, filed by the president and his sons, seeks damages for the alleged mishandling of their confidential tax information by an IRS contractor. Mr. Thompson's bill will be formally introduced in the House this week. 
Desantis faces lawsuit over redistricting
Florida Gov. Ron DeSantis is facing a lawsuit claiming he lacks the authority to call a special session for redistricting congressional maps mid-decade. The lawsuit, supported by the National Redistricting Foundation, argues that this power belongs to the Legislature and violates the “separation of powers doctrine” in the Florida constitution. The suit was filed against DeSantis and Florida Secretary of State Cord Byrd, seeking to declare the governor's proclamation unenforceable. The lawsuit states, “The decision over whether and when to reapportion Florida's congressional districts belongs to the Legislature.” This legal challenge comes amid a nationwide trend of mid-decade redistricting, which could significantly impact the upcoming midterm elections.
EMPLOYMENT LAW
EEOC shifts power, slows lawsuits
The Equal Employment Opportunity Commission (EEOC) has implemented a new requirement for commissioner approval before initiating most lawsuits, significantly increasing the power of the Republican-led commission. In a recent private vote, the EEOC revoked the longstanding litigation authority previously held by the agency's general counsel and regional attorneys. This change allows the commission, chaired by Andrea Lucas, to review nearly all new cases, including routine matters. Lucas has indicated a shift in litigation priorities, focusing on challenging diversity programs and emphasizing religious discrimination. As she noted, this move could "slow the pace and number of cases brought" by the agency.
Starbucks lawsuit dismissed by judge
A federal judge in Missouri dismissed a lawsuit from the Republican-led state accusing Starbucks of using diversity, equity, and inclusion initiatives as a cover for discrimination based on race, gender, and sexual orientation. U.S. District Judge John Ross stated that the state failed to demonstrate any discrimination against "even a single Missouri resident" associated with Starbucks. The lawsuit, initiated by former Attorney General Andrew Bailey, alleged that Starbucks unlawfully linked executive compensation to achieving racial and gender hiring quotas. The case sought to compel Starbucks to cease alleged discriminatory practices and pay damages. 
LAWSUITS
Professor sues Texas A&M over firing
Melissa McCoul, a former senior lecturer at Texas A&M University, has filed a lawsuit against the institution after her termination last year, claiming violations of her rights to free speech and due process. McCoul was dismissed following a controversy over a classroom video where a student questioned the legality of discussing gender identity in a literature lesson. Despite two independent reviews stating that Texas A&M had no cause for her firing, the university upheld the decision. McCoul stated, “Today I did something that would have been inconceivable a year ago – I've sued Texas A&M to hold it accountable for violations of my Constitutional rights.” She is seeking reinstatement and monetary damages, expressing hope that her lawsuit will prompt the university to reconsider its treatment of faculty.
Ex-Hudson’s Bay staff seek approval for hardship fund
Lawyers representing former Hudson’s Bay employees have asked an Ontario court to approve a hardship fund and additional support measures to help workers affected by the department store’s collapse last year. The motion also seeks approval for a lump-sum payment to support former employees receiving long-term disability benefits, many of whom were told their benefits would be suspended. Lawyers say the measures would provide income security and time for some of the most vulnerable former employees to manage their finances following the insolvency. Hudson’s Bay employed more than 9,300 people before filing for creditor protection and closing all stores, with only a handful of staff remaining as the company continues to wind down through the courts.
J&J seeks SCOTUS review
Johnson & Johnson has requested the U.S. Supreme Court to review a shareholder lawsuit regarding the safety of its talc products and whether it should be classified as a class action. The company argues that the case could restrict investors' ability to achieve class certification. J&J's appeal follows the Supreme Court's 2021 decision in Goldman Sachs Grp., Inc. v. Ark. Teacher Ret. Sys., which clarified class certification standards in securities cases. The company claims there is a discrepancy among U.S. courts regarding this issue.
INDUSTRY
Snap pays top lawyers $40m
Snap allocated nearly $40m in total compensation to two leading lawyers in the past year, as revealed in a recent securities filing. Zachary Briers, who joined Snap as general counsel in November, received a pay package worth approximately $24.2m. His predecessor, Michael O'Sullivan, earned nearly $15.9m before departing in December. The filing also disclosed that two major law firms received close to $58m from Snap.
Top Goldman lawyer asked Epstein about his 'Russians' in email exchange
The FT reports that Goldman Sachs' Kathy Ruemmler discussed a potential Citadel job with Jeffrey Epstein, revealing controversial exchanges about gender and compensation, while maintaining her relationship was professional.
FIRMS
Paul Weiss faces leadership shakeup
Paul Weiss has appointed a new chairman following the resignation of Brad Karp, who stepped down after revelations of his close ties to convicted sex trafficker Jeffrey Epstein. Karp, who led the firm for nearly two decades, faced scrutiny after the Justice Department released documents indicating he had a more extensive relationship with Epstein than previously disclosed. Chris Opfer, Bloomberg Law editor, noted: “Long gone are the days of Paul Weiss being this, sort of, large litigation boutique.” The firm has shifted towards a corporate focus, and with Karp's departure, Scott Barshay has been elevated to the chairman role, solidifying this transformation.
Epstein saga takes a twist
Recent revelations indicate that Ghislaine Maxwell transferred significant funds to the Jones Day Client Trust Account, raising questions about the law firm's involvement with her. Emails show Maxwell requesting transfers of $25k and $31,746.50 to Jones Day in 2017, with a total of $218,791.31 confirmed by a UBS team later that year.
Top cities for partner promotions
In 2026, Pennsylvania's law firms saw significant partner promotions, particularly in Philadelphia and New York City, which led the way with 23 and 34 promotions, respectively. Notably, Morgan Lewis & Bockius and Reed Smith each promoted 29 partners. The trend reflects a broader movement within the legal sector, as firms globally are elevating numerous attorneys to partner roles.

 
Law
Clyde & Co expands with Seattle merger
Clyde & Co has celebrated its 20th anniversary in North America by merging with Forsberg & Umlauf, establishing its 20th office in Seattle, Washington. This merger adds 39 professionals to Clyde & Co's team in the Pacific Northwest. Forsberg & Umlauf, founded in 1993, specializes in insurance coverage and defense, with a strong reputation in the region.

 
CDR
Perkins Coie lawyers jump ship
Several leaders from Perkins Coie's litigation practices have transitioned to McGuireWoods, establishing a new office in the Pacific Northwest. Rike Connelly, the former chair of Perkins Coie's business litigation, is at the helm of this new team, which consists of eight Seattle-based lawyers. 
Norton Rose Fulbright welcomes new partner
Helen Christakos has joined Norton Rose Fulbright as a partner in its global privacy and cybersecurity group in San Francisco.

 

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