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WHAT WE'RE WATCHING

PARTNER PROFITABILITY PRESSURE - Contrary to what that guy from high school kept predicting on Facebook, COVID-19 did not magically disappear after Joe Biden was elected president. What's more, it seems as if it might even hang around after Inauguration Day. With that in mind, law firms are continuing to be cost-conscious. As the year progresses, however, finding savings will be harder to do than it was last year, when the pandemic abruptly derailed life as we knew it and forced firms to make sometimes severe staff cuts while also putting typical expenses like travel and client entertainment on ice. In this week's Law.com Trendspotter column, we look at how internal budgetary pressures and potential client pushback on significant rate increases may force more firms to get tough with partners—even rainmakers—who have grown accustomed to operating inefficiently.

DEALING WITH THE PROBLEM - As we noted in this space last week, the number of women leading large M&A deals has remained stagnant over the previous several years. In an effort to understand what's driving the problem as well as how it might be solved, Law.com's Patrick Smith spoke to a number of prominent female M&A attorneys, who said the key to improving the situation isn't just about putting more women in leadership positions, but changing how matters are staffed and how client relations are managed and handed off. "The client handoff often favors men," said Ann Beth Stebbins, a partner at Skadden, Arps, Meagher, Slate & Flom and a 2020 The American Lawyer Dealmaker of the Year. "At most firms historically the most powerful partners were white men, even here at Skadden. A lot of times the handoff is to a partner that the relationship partner feels is most like them, and thinks the client would be most comfortable with them."

ASSET MISMANAGEMENT? -  Asset management giant Allianz was sued Friday in New York Southern District Court on behalf of Marco Consulting Group Trust 1, an investment trust managed by BNY Mellon. The lawsuit, brought by Susman Godfrey, accuses Allianz of breaching its fiduciary duty by adopting a risky investment strategy amid market turmoil caused by the COVID-19 pandemic. The case is 1:21-cv-00401, Marco Consulting Group Trust 1 v. Allianz Global Investors U.S. LLC et al. Stay up on the latest deals with the new Law.com Radar.

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