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WHAT WE'RE WATCHING

BETTER – The six-year slide in bar exam pass rates nationwide looks to be at an end. Karen Sloan reports that all but a handful of jurisdictions have thus far announced their results for the July 2019 exam, and the vast majority posted modest gains in their overall pass rates while a smaller number saw pass rate increases of 7% or more. Many are eagerly awaiting to see what happens in California, where scores  are not scheduled to come out until Nov. 15. Just 41% of bar takers there passed last July's exam.

HINDSIGHT - If there's a silver lining to law firm failures, it's that they provide lessons in what not to do. Lizzy McLellan and Gina Passarella report on the takeaways from the recent demise of LeClair Ryan and that of more than 10 law firms in the past decade. Nearly all were adding lawyers and expanding revenue leading up to their downfall, but an analysis of the data shows that in most cases firms became overburdened by the mounting debt that helped fuel their growth. Observers say they were operating under strategies developed during the boom years that did not hold up during lean times.

NOT SO FAST – The DOJ is pressing an emergency appeal in the D.C. Circuit to block an order requiring disclosure—by Wednesday—of Mueller grand jury materials to House Democrats. U.S. District Judge Beryl Howell in Washington is set to hear from House lawyers today about the government's effort to freeze her decision. That ruling, which validated the House impeachment inquiry, said the government can no longer keep secret the redacted parts of Mueller's report on Russian interference and Trump's alleged obstruction.

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EDITOR'S PICKS

As Hackers Get Smarter, Can Law Firms Keep Up?

'Willful' Thinking: Supreme Court Set To Clarify When Trademark Owners May Recover Profit Awards

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WHILE YOU WERE SLEEPING

FAREWELL – A team of about 30 lawyers is leaving K&L Gates' employment practice in Australia, in what looks to be one of the largest defections from an international law firm this year. Meganne Tillay and Christopher Niesche report that the team spans various offices and includes up to eight partners. The firm has four offices across Australia, located in Sydney, Perth, Brisbane and Melbourne. According to its website, it has 237 lawyers in the country.

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WHAT YOU SAID

"It doesn't take a whole lot of debt to cause turbulence in a firm if the cultural cohesiveness isn't there."

—  Sanjay Benegal, a senior vice president and legal industry specialist at Citizens Commercial Banking, on the factors contributing to law firm failures.

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