What a Recession Could Look Like for Law Firms: The Morning Minute
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June 02, 2022 at 06:00 AM
5 minute read
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WHAT WE'RE WATCHING
RECESSION READY? - After two years of stunning financial growth in the legal industry, some in Big Law are bracing for a recession. While nothing is certain, the specter of a recession is looming, as economists continue to throw out the chances of a downturn, amid rising interest rates, inflation and geopolitical tensions. In the event of a downturn, law firm leaders and industry observers told Law.com's Andrew Maloney they are expecting the rate of office openings and the competition for talent to slow, while putting more focus on counter-cyclical practice areas. Those dynamics could also put pressure on billing rates and shift some of the leverage away from employees and back to law firm management for issues such as compensation and whether personnel can work remotely, industry observers added.
LEAK PROOF - Lawyers and former clerks are opening up about the options available for, and the consequences associated with, cooperating with the investigation into the April leak of a draft U.S. Supreme Court opinion that would topple the constitutional right to abortion. The ongoing investigation is linked to Chief Justice John Roberts Jr.'s effort to uncover who provided to a media outlet the draft of what would be a precedent-breaking opinion. According to CNN in a story published Tuesday, Roberts is close to asking clerks to sign affidavits saying they were not involved in the leak. Requests for clerks' phones are also rumored to be coming. National Security and Government Investigation attorney Mark Zaid suggested to Law.com's Brad Kutner that clerks could band together to deny compliance with requests for cell phone access. "The optics of declining to do so [alone] could create an adverse inference that the individual has something to hide even though the decision could rightly be one based on principle alone," he said. "Frankly, if I were a clerk, I would encourage as many clerks and staff as possible to decline as a group to turn over their personal data."
WHO GOT THE WORK?℠ - Bernard J. Bobber and Corissa L. Pennow of Ogletree, Deakins, Nash, Smoak & Stewart have entered appearances for Johnson Controls International, the Ireland-headquartered building equipment manufacturer, in a pending collective employment action. The action, filed April 3 in Wisconsin Eastern District Court by Parmet PC, centers on the defendant's use of Kronos payroll and timekeeping software and alleges that a 2021 ransomware attack on Kronos' systems resulted in overtime pay violations. The case, assigned to U.S. District Judge J.P. Stadtmueller, is 2:22-cv-00414, Henderson v. Johnson Controls Inc. >> Read the filing 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.
CARTER'S CLASS ACTION - Carter's Inc. was slapped with an employment class action Wednesday in New York Eastern District Court. The suit, filed by Bursor & Fisher, contends that store employees whose work includes unloading and stocking inventory, handling and unpacking deliveries, and assembling storefront displays qualify as manual workers under New York's Labor Law and accuses the company of violating a requirement to pay the workers on a weekly basis. Counsel have not yet appeared for the defendant. The case is 1:22-cv-03234, Gutierrez v. Carter's, Inc. Stay up on the latest deals and litigation with the new Law.com Radar.
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EDITOR'S PICKS
Another State Appellate Court Nixes a COVID-19 Business Interruption Claim By Marianna Wharry |
'They Have Nothing to Add': Why Companies Haven't Said Much About Latest Mass Shootings By Jessica Mach |
Tom Girardi Disbarred by California Supreme Court By Cheryl Miller |
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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