Want to get this daily news briefing by email? Here's the sign-up.

WHAT WE'RE WATCHING

RAISING ARIZONA –  For an industry that has only recently been introduced to radical concepts like "competitive pricing" and "hiring businesspeople to run the business," Arizona's decision allowing nonlawyers to share fees with lawyers and hold equity stakes in law firms is about as mind-blowing as it gets. And by eliminating Rule 5.4, the Grand Canyon State has vaulted itself to the forefront of a movement to revolutionize the U.S. legal industry. Now the only question is: how far will the revolution go? Consumer-focused legal businesses seem to be the most logical starting point for taking advantage of Arizona's reforms, but, as Dan Packel reports, attorneys who serve commercial clients are also paying close attention. "Lawyers have enjoyed a monopoly on the provision of legal services as long as the profession has existed in the U.S," said James Goodnow, managing partner of Arizona-based Fennemore Craig. "This lack of competition has bred complacency in far too many law firms across the country. Although the broader business world has evolved with break-neck speed, too many law firms have been inching along at a snail's pace."

LOST LEADERS – Arizona's bar may be making strides, but the greater legal industry still has a long way to go to catch up with most of the rest of the professional world. This is particularly true when it comes to leadership development, which, as Ben Seal reports, remains dangerously low on many firms' priority lists. According to law firm consultant Tim Corcoran, "an astonishingly small number of firms have any type of formal leadership development program." And even many of the programs that do exist tend to be half-baked. Lisa Smith, a consultant at Fairfax Associates, said a lot of firms, loath to take attorneys off the billable-hour treadmill to spend time toning their leadership muscles, instead opt for shortcuts. "You can't teach leadership skills over a single lunch hour," Smith said. "A lunch-and-learn is not going to move the needle. It needs to be more programmatic and more intensive."

FELL INTO THE GAP – The Gap and its senior executives and directors are facing a shareholder derivative lawsuit that accuses the company of making false statements regarding its commitment to diversity. The suit, filed Tuesday in California Northern District Court by Bottini & Bottini, calls on The Gap to create a $700 million fund to support the hiring and promotion of minority employees and seeks the replacement of two board members with Black candidates. Counsel have not yet appeared for the defendants. Read the full complaint and stay up to date on major litigation nationwide with Law.com's Legal Radar.

EDITOR'S PICKS

It Doesn't Break Ethical Obligations. So Why is Reddit Still Scaring Off Attorneys?