In Associate Ranks, Slowdown in Demand Could Mean 'Cleanup': The Morning Minute
The news and analysis you need to start your day.
October 26, 2022 at 06:00 AM
5 minute read
Law Firm Associates
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WHAT WE'RE WATCHING
'CLEANUP' TIME - As lateral hiring continues to slow, law firms are reassigning corporate associates into litigation and bankruptcy practices, while other firms have begun trimming their lawyer ranks at the edges, cutting associates they feel aren't up to par, or at least prepping to do so by identifying offices, practices and people who are underperforming, industry observers told Law.com's Andrew Maloney. Law firms are using the softer demand environment to address weak spots that were difficult to cut during a stronger economy, recruiters and legal industry analysts said. "A lot of chairs feel that slower deal flow, softer economy and softer performance in many firms has a silver lining in that it gives them cover to address areas of weakness in their firm that were harder culturally to address in a strong economy," said law firm consultant Kent Zimmermann of Zeughauser Group. He said law firms are not just looking at people, but whole offices and practices, and looking to counsel weak performers out of the firm. "What I hear chairs and managing partners indicate is they're thinking about cleaning up," he said.
TAKIN' CARE OF BUSINESS - Some are called executive directors, some are called chief operating officers and others are called directors of operations. But there's one thing you can call all of them: busy. As Law.com's Justin Henry reports, law firm business leaders have become more central to the operations of these formerly lawyer-led business enterprises, as firms scale their operations across multiple practice areas and geographic markets. And while such trends can be seen most prominently in Big Law, data and interviews with law firm leaders show how the integration of a firm's business and legal functions have a downstream effect on the rest of the legal industry as law firms of all sizes recognize the need for business leadership to make their delivery of legal services competitive. "Any chief operating position at an Am Law 200 firm requires a combination of operational knowledge and skills as well as understanding strategy," said Debra Lawrence, who joined Ballard Spahr earlier this year in the newly created position of chief operating officer.
WHO GOT THE WORK?℠ - Anupama Prasad of Cozen O'Connor has entered an appearance for Allstate in a pending policyholder class action over the insurer's method of calculating economic loss benefits under its auto insurance policies. The action, filed Aug. 26 in New York Eastern District Court by Marschhausen & Fitzpatrick and Sacks Weston, claims that Allstate improperly calculates its Basic Economic Loss coverage for wage earners that earn more than $2,000 per month, resulting in underpayments. The case, assigned to U.S. District Judge Kiyo A. Matsumoto, is 1:22-cv-05096, Brown v. The Allstate Corporation 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 - Software company Palantir Technologies and its top executives were hit with a securities class action on Tuesday in Colorado District Court. The suit, filed by Grant & Eisenhofer and Shuman Glenn & Stecker, accuses the defendants of failing to disclose a slowdown in the company's growth and of downplaying challenges in acquiring and retaining business. The complaint is virtually identical to an earlier case filed by Pomerantz LLP on September 15. Counsel have not yet appeared for the defendants. The case is 1:22-cv-02805, Allegheny County Employees' Retirement System v. Palantir Technologies Inc. et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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EDITOR'S PICKS
Houston Astros Lawsuit Heard at Texas Supreme Court as Franchise Heads to World Series By Adolfo Pesquera |
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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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