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WHAT WE'RE WATCHING

JUST RIGHT - As Law.com's Andrew Maloney reports, many law firms could be in for a bumpy ride in the coming months, but analysts are "generally bullish" on at least one segment of the industry: midsize firms. Relative to their larger competitors, firms outside of the Am Law 200 have increased demand, stemmed productivity declines and fared well in the face of lawyer attrition, according to a new report this week. The 2022 Report on the State of the Midsize Legal Market from Thomson Reuters, which summarizes data from 168 U.S.-based law firms, found smaller firms have seen a 1.7% increase in demand, on par with Second Hundred firms (1.8%) and noticeably above top 100 firms (-0.2%) through the first half of the year. They've also maintained productivity better than their peers, seeing a decline of 1.8% versus 3.3% and 2% drops for First and Second Hundred firms, respectively, compared to the halfway point of last year, the report found. Their relatively lower rate growth, too, has bolstered their reputation as cost-effective alternatives to Big Law. And while associate salaries have grown less in midsize firms than their peers, such smaller firms make up a "disproportionate" number of what the analysts have called "Stay" firms— those with lower turnover and which profile as desirable places to work. The segment isn't without its challenges. Expenses have still grown dramatically, profit per lawyer growth in midsize firms trails larger competitors, and those lower rate increases mean inflation is particularly threatening. "Yet even in the face of some factors which will give wise law firm leaders pause, midsize law firms are on a generally favorable footing upon which to continue the venture into whatever the future may bring," the report, published Thursday, stated.

YOU HAVE 20 SECONDS TO COMPLY - GCs and corporate compliance officers are now on notice that the DOJ is putting a premium going forward on how quickly companies report potential misconduct. As Law.com's Nate Robson writes in this week's Barometer newsletter, hat means speedy disclosure of violations are more likely to garner cooperation credit from the government, a shift that has ruffled the feathers of some within the white-collar bar who believe it could put speed over accuracy when companies are trying to investigate potential issues. Ultimately, the Justice Department's goal is to more quickly pursue companies and individuals engaged in wrongdoing while evidence and memories are still fresh, and to use a carrot-and-stick approach to discourage companies from intentionally slow-walking an investigation. The change is an escalation of last year's announcement that the government will look to hold companies and individuals liable for wrongdoing, and in some cases, use corporate monitors to ensure future compliance. To receive the Law.com Barometer directly to your inbox each week, click here.

WHO GOT THE WORK?℠ -Armin Ghiam of Hunton Andrews Kurth has entered an appearance for America RX.Com Inc., Pavan Kumar Darisi and other defendants in a pending trademark infringement lawsuit. The action was filed Aug. 24 in New Jersey District Court by Vorys, Sater, Seymour and Pease and Robinson Miller LLC on behalf of Bayer, a German-based biotechnology company. The complaint accuses the defendants of allegedly selling counterfeit or poor-quality Bayer products. The case, assigned to U.S. District Judge Kevin McNulty, is 2:22-cv-05192, Bayer Healthcare LLC v. Darisi, Inc. et al. >> 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.

ON THE RADAR - The State University System of Florida was hit with a civil rights class action on Thursday in Florida Northern District Court. The suit was brought by Grant & Eisenhofer and attorney Josh Dubin on behalf of students at Florida A&M University, a historically black land-grant university. The complaint accuses the defendants of racial bias due to discriminatory funding practices and failure to improve FAMU facilities. Counsel have not yet appeared for the defendants. The case is 4:22-cv-00341, Denton et al. v. Board of Governors for the State University System of Florida et al. Stay up on the latest deals and litigation with the new Law.com.  

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