As GCs Outsource More, Law Firms May Be Out of Luck: The Morning Minute
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May 04, 2022 at 06:00 AM
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WHAT WE'RE WATCHING
OUT OF THE RUNNING - Legal and corporate compliance departments expect to outsource more work in the next three years, but law firms probably shouldn't bother waiting by the phone. According to a new Wolters Kluwer CT Corporation and ELM Solutions report, CLOs plan to continue favoring legal tech and corporate compliance providers over law firms. And Wolters Kluwer director of legal operations and industry insights Nathan Cemenska told Law.com's Dan Roe that the preference for tech-enabled specialization could have consequences beyond the work that law firms weren't getting anyway. For instance, legal tech companies are bundling in services like contract review to their legal invoice review and technology strategy offerings. "Big Law sometimes uses contract review and other lower-level work as a loss leader to up-sell higher-end services," Cemenska said. "That might not be as much of an option going forward."
LOOSE LIPS SINK SHIPS - Even for an institution that is not exactly known for stellar optics, the leak of a draft SCOTUS opinion overruling two major abortion decisions is a particularly bad look. Court scholars and others agreed that whoever leaked the draft opinion written by Justice Samuel Alito did the court no favors at a time when its public approval is on the decline, and when a number of justices have raised concerns about the institution's legitimacy in the public's eye. "The fact that this draft opinion was leaked to the press—an unprecedented breach, to my knowledge—is an assault on the institutional legitimacy of the court, a naked political act that disregards the rule of law and the integrity of the court's decision-making process," Tobias Wolff, deputy dean of the University of Pennsylvania's Carey Law School, told Law.com's Marcia Coyle. "We should not have this draft in front of us. But we do, and if the final opinion looks substantially like this draft, it is a grave moment in our constitutional history."
WHO GOT THE WORK?℠ - High school sports media company PlayOn! Sports, backed by KKR & Co. and Panoramic Ventures, announced that it has agreed to merge with GoFan, a ticketing platform for high school events. The transaction, announced April 27, is expected to close in the second quarter of 2022. Financial terms were not disclosed. Atlanta-based PlayOn! was advised by a Kirkland & Ellis team led by partners Ravi Agarwal, Francisco Barrón, Matthew Leist, Jennifer Perkins, Seth Traxler and Eric Wedel. Counsel information for GoFan, which is based in Alpharetta, Georgia, was not immediately available. >> Read more on Law.com Radar and check out the most recent edition of Law.com's Who Got the Work?℠ column to find out which law firms and lawyers are being brought in to handle key cases and close major deals for their clients.
SWING AND A MISS - Saul Ewing Arnstein & Lehr filed a lawsuit alleging breach-of-contract and trademark infringement Tuesday in Florida Middle District Court on behalf of LocoTrips.com, BuildRealBrands and Bret Fencel, originators of the "YoungSwingers" and "Hedonism" adult-themed events. The complaint accuses PB&J Resorts of refusing to refund hotel room bookings amid cancellation of 2020 Hedonism events due to COVID-19, and withholding nearly $1 million the plaintiffs required to refund customers. The hotel is also accused of marketing its own Hedonism events as of February 2021, misappropriating the plaintiffs' "Hedonism" and "YoungSwingers" marks and misrepresenting to customers that the defendant had rightfully acquired the Hedonism brand. Counsel have not yet appeared for the defendant. The case is 6:22-cv-00833, Fencl et al v. PB&J Resorts II (Jamaica) Limited d/b/a Hedonism II. Stay up on the latest deals and litigation with the new Law.com.
EDITOR'S PICKS
Washington Settles Opioid Case for $518 Million By Amanda Bronstad |
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Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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