Hiring Slump Favors Law Firms With Dry Powder: The Morning Minute
The news and analysis you need to start your day.
October 19, 2022 at 06:00 AM
5 minute read
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WHAT WE'RE WATCHING
SEARCH FOR STABILITY - In-house recruiters were reveling in a red-hot hiring market just a few months ago, while also wondering when the inevitable cool down would begin. Suddenly, it's downright chilly. "My team is working on some strong searches, but it's not that frenzied pace," said Carolyn Aberman, national in-house practice leader at Lucas Group in Chicago, told Law.com's Phillip Bantz and Dan Roe . "To the extent that we're seeing freezes or the pullbacks, that's related to fear of what's coming up," Aberman added. "My prediction is that we'll see a bit of caution while we wait out the next round of economic news, but I don't envision a massive hit to in-house hiring happening any time soon." Still, as layoffs hit legal departments of tech and crypto companies, in-house lawyers are already looking at law firms' countercyclical nature as a source of potential stability amid economic uncertainty. "It doesn't get spelled out quite as bluntly," said Avis Caravello, a San Francisco law firm recruiter, of her conversations with in-house lawyers considering a law firm job. "If I'm talking to someone looking to come back into a law firm from in-house as a partner, they've probably done both already. It's implicit they're thinking along those lines, particularly here in the Bay Area where there have been a number of tech-company-wide layoffs."
CRIMES OF CONVENIENCE - Dozens of lawsuits allege Kia and Hyundai have made it easy for criminals to steal their cars, which, from a legal perspective, is decidedly not what you want. The suits claim the carmakers failed to include a common security feature in their vehicles, leading to a surge of car thefts aided by viral videos on TikTok and YouTube demonstrating exactly how to steal them, Law.com's Amanda Bronstad reports. Car owners have filed more than 30 class actions, alleging Kia America Inc. and Hyundai Motor America failed to install an "immobilizer"—a security flaw exploited by a group of Milwaukee teenagers calling themselves Kia Boyz, whose tutorials on social media have spawned a rise in thefts of the vehicles. In lawsuits filed in the past two months, plaintiffs say thieves drove off with their cars, many recovered in other locations and usually damaged. "It's the modern day hotwire," said Roland Tellis, of Baron & Budd in Dallas, "but instead of a screwdriver, folks are using a USB cord. And, if you look on TikTok or YouTube, there are videos that are literally how-to's for would-be thieves to steal these vehicles by popping the dash and shoving a USB cord or some similar device into a slot, like folks used to do with screwdrivers back in the day, and start these cars."
ON THE RADAR - Estee Lauder, Bobbi Brown Cosmetics and other cosmetics companies were hit with a biometric privacy class action Tuesday in Illinois Northern District Court arising from the virtual try-on feature on the defendants' websites. The court action accuses the defendants of violating the Illinois Biometric Information Privacy Act by surreptitiously collecting the facial scans of users of the virtual try-on feature. The lawsuit was brought by a trio of law firms: DiCello Levitt Gutzler; Don Bivens PLLC; and Hausfeld. Counsel have not yet appeared for the defendants. The case is 1:22-cv-05713, Castelaz et al v. The Estee Lauder Companies Inc. et al. Stay up on the latest deals and litigation with the new Law.com Radar.
EDITOR'S PICKS
First Woman to Serve on U.S. Third Circuit Dies at Age 90 By Aleeza Furman |
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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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