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THE HOT STORY
Trump's pick for AG revealed
President Donald Trump announced his intention to nominate Todd Blanche as the permanent attorney general." Blanche, who has been serving in the role on an acting basis, has faced criticism for his aggressive actions against Trump's political opponents and the controversial $1.8bn "Anti-Weaponization Fund." This fund aimed to compensate individuals allegedly unjustly investigated under previous administrations but faced backlash from both Democrats and some Republicans. Despite the scrutiny, Blanche has maintained that he is focused on correcting alleged past abuses by the Biden administration and has denied any politicization of the Justice Department. His nomination is expected to require support from Senate Republicans, who have expressed concerns over his recent initiatives.
LEGAL OPERATIONS
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POLITICAL
Trump administration abandons $1.8bn ‘anti-weaponization’ fund
The Trump administration has officially scrapped its proposed $1.8bn “anti-weaponization” fund after facing strong bipartisan criticism and resistance from Republican lawmakers, Attorney General Todd Blanche told Congress. The fund had been intended to compensate individuals who claimed they were unfairly targeted by politically motivated legal actions, but critics argued it could have benefited Trump allies and participants in the January 6th Capitol riot. The fund became a major obstacle to a separate immigration enforcement package moving through Congress, prompting Republican senators to demand its cancellation. However, the administration will maintain a related settlement provision that ended pending IRS audits of Mr. Trump, his family, and certain associates. That aspect of the agreement has also drawn scrutiny from lawmakers in both parties, with some Republicans questioning its legality and Democrats calling for legislative action to prevent similar arrangements. The settlement was part of an agreement resolving Mr. Trump’s lawsuit against the IRS over the disclosure of his tax returns and other related claims.
FIRMS
Biggest law firms in America revealed
The National Law Journal has released its annual NLJ 500, ranking the largest law firms in the United States based on headcount. The report highlights that Dentons retains its title as the largest firm, employing more lawyers than any other firm for the second consecutive year. The average firm size in the NLJ 500 increased by 2.5%, from 396 to 406 lawyers. Notably, the number of nonequity partners rose by 5% in 2025, while the equity partner tier saw a slight decline of 0.2%.
Pillsbury Winthrop faces fraud allegations
Pillsbury Winthrop and partner Riaz Karamali are embroiled in a lawsuit alleging they defrauded UBS Asset Management of $145m. The complaint, filed in Manhattan's New York County Supreme Court, claims Karamali collaborated with Joseph Sanberg and Ibrahim AlHusseini to produce "dozens of fake financials" to secure loans from Clover Private Credit Opportunities Origination II LP. Clover asserts it was "lied to and deceived" by Karamali and his associates.
Srinivasan's rise to the top
Kalpana Srinivasan, the first female managing partner of Susman Godfrey, has propelled the firm to record revenues through landmark legal victories. Over the past three years, the firm has achieved its highest earnings by winning significant cases in technology, antitrust, and intellectual property. Notably, Srinivasan secured a nine-figure win in a trade-secret retrial after eight years of litigation. Her diverse background, including journalism and law, has shaped her leadership style. “I was learning both legal litigation skills but also learning about growing the business,” she states.
Weil's revenue growth falters
Weil Gotshal & Manges is facing challenges as its revenue growth lags behind competitors. From 2008 to 2025, Weil's revenue increased at only half the rate of its peers, with a mere 3% rise last year. This decline raises questions about the firm's future in a sector that values tradition and stability. 
Evans joins Perkins Coie
Jamie Evans has joined Perkins Coie as a partner in its corporate practice in Seattle, focusing on corporate and securities law. He represents technology and life sciences companies, advising on public and private offerings of equity and debt securities. Previously, Evans was with Orrick, Herrington & Sutcliffe.
CASES
Law firm faces backlash over GenAI misuse
Memphis firm Reaves Law Firm PLLC is facing significant legal repercussions after misusing GenAI tools, leading to fabricated case citations. The firm has filed a lawsuit against Baker, Donelson, Bearman, Caldwell & Berkowitz PC, claiming malpractice in an employment case that resulted in a judgment exceeding $3.6m against them. Baker Donelson responded, stating that Reaves relied on cases “that do not stand for the propositions for which they are cited,” including quotes from non-existent cases. This incident underscores the potential risks associated with the use of GenAI in legal practices.
TECHNOLOGY
AI giants clash in legal arena
Anthropic has made significant strides in the legal market by launching over 20 MCP connectors for its Claude AI assistant, along with 12 specialized plugins for legal practice areas. In response, OpenAI has appointed Jason Boehmig, cofounder of Ironclad, to lead its legal product development. Boehmig, who previously served as a corporate attorney, expressed his excitement on LinkedIn, stating: "Today I am filled with hope. It's my first day at OpenAI, leading product for the legal vertical." He highlighted the evolution of the legal industry, noting its vibrancy compared to twelve years ago, and emphasized the importance of collaboration in harnessing AI for societal good.
Revolutionizing client relationships with AI
Litera has unveiled Foundation 365, an AI-powered CRM platform designed for law firms, built on Microsoft Dynamics 365. This innovative tool integrates seamlessly with Microsoft 365 Copilot, Outlook, and Teams, enabling lawyers to enhance client relationships and streamline business development. Foundation 365 is already trusted by five of the Global Top 10 law firms and over 4,000 firms worldwide, demonstrating its effectiveness in providing actionable intelligence directly within the tools lawyers use daily. The platform aims to reduce friction in accessing critical business data, allowing legal professionals to act on opportunities more efficiently.
Wordsmith AI secures $70m funding
Wordsmith AI, a legal artificial intelligence platform, announced a $70m Series B funding round led by Highland Europe and Index Ventures. The funding aims to enhance the development of Wordsmith's AI platform, expand its workforce to 300 globally by year-end, and meet the increasing demand from corporate legal departments. The platform assists in-house legal teams in managing legal requests efficiently, utilizing AI for routine tasks while allowing lawyers to handle more complex issues.
INDUSTRY
Courtroom recordings face legal challenge
California Supreme Court justices have been urged to relax restrictions on electronic courtroom recordings due to a significant shortage of court reporters, which has led to a “constitutional crisis.” Mark R. Yohalem, an attorney with Wilson Sonsini Goodrich & Rosati, highlighted the urgency, stating: “Hundreds of thousands of hearings took place without a verbatim record, many involving fundamental rights, basic freedoms, and personal safety.” The lack of transcripts affects roughly 70% of family law and probate cases, raising concerns about the integrity of legal proceedings.
LAWSUITS
Seagate settles for $175m over claims
Seagate Technology has agreed to a $175m settlement to resolve shareholder claims that it misled investors regarding hard-drive sales to Huawei and its compliance with U.S. export-control laws. The case, involving chief executive Dave Mosley and chief financial officer Gianluca Romano, alleged that the company concealed legal risks associated with sales to Huawei after U.S. restrictions tightened, leading to inflated stock prices. The settlement highlights the growing intersection of trade compliance and securities litigation, as export-control issues increasingly become grounds for shareholder claims. Legal professionals are reminded that export-control compliance must be integrated into disclosure governance and board oversight. If approved, this settlement will mark a significant moment for Seagate, but it may not be the last case addressing securities law related to sanctions and export-control exposure.

 

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