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WHAT WE'RE WATCHING

VALUE SUBTRACT - TGIF because we've got some sour news for Am Law 100 fans. Despite record profits last year, the collective valuation of those firms, as calculated by one analyst, has plunged over the last seven months, following the trajectory of the S&P 500 Index. Applying his proprietary methodology for the third time to the American Lawyer's own data, Hunton Andrews Kurth CFO Madhav Srinivasan found in June that, based on figures from the 2022 Am Law 100 report, the valuations of these firms had dropped by 8.3% since he last performed the analysis in November 2021. While the drop in valuations doesn't immediately impact the finances of equity partners, it serves as an indication that they're no less sheltered from external pressures than conventional businesses. "The law firm valuation model is holding," Srinivasan told Law.com's Dan Packel. "We've had three data points to check, and all three times, it's been in consonance with the general S&P index." Srinivasan credited rising interest rates for the lion's share of the decline in valuations since the previous exercise, when he used 2021 Am Law 100 data. These rising rates, a product of Federal Reserve policy to combat surging inflation, have driven up the cost of debt and the cost of equity.

REMOTE REPERCUSSIONS - Virtual court has caught on in a big way in recent years, with many judges, court administrators, attorneys and clients praising its efficiency and endorsing its continued use. But it was never a great fit with criminal proceedings, causing many in the legal community to raise concerns about infringing on defendants' rights with remote technology throughout the pandemic. And, Law.com's Alaina Lancaster writes in this week's Barometer newsletter, that fit is only becoming more uncomfortable. "As courts continue to deploy remote technology in criminal cases, serious and immediate problems will likely continue to surface," Lancaster writes. "Reports of the failures of the technology might be enough to deter adoption of remote technology for criminal proceedings in most court systems across the country. Still, lawmakers and judges who value the possible benefits of the technology might take on the problems that will emerge, develop best practices and provide a roadmap for the rest of the nation."

ON THE RADAR - Comedian Lewis Black filed a copyright infringement lawsuit Thursday in California Central District Court against streaming service Pandora. The lawsuit, filed by King & Ballow, accuses Pandora of digitally broadcasting sixty-eight of his recorded works without permission. Counsel have not yet appeared for the defendant. The case is 2:22-cv-04634, Black v. Pandora Media, LLC.  Stay up on the latest deals and litigation with the new Law.com Radar. 

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