CHECK YOUR POCKETS - There may not be a hot market that all the law firms flock to this year like Salt Lake City in 2021, but that doesn't mean there's no market share to be gained in 2023. A new report, publishing today, suggests there were no comparable "outlier" markets last year, and broad economic uncertainty may make firms more hesitant to expand their reach. However, law firm leaders and analysts told Law.com's Andrew Maloney that a winning strategy when it comes to broadening their horizons involves thinking locally—finding pockets of the country that are thriving, especially due to new domestic manufacturing. "Much of what affects the U.S. market and the legal industry stems from global events such as the Ukraine war, inflation and the fear of recession," analysts wrote in the forthcoming Leopard State of the Industry Report. "On the other hand, parts of the country are experiencing a local economic boom as some previously offshored manufacturing is brought back domestically. Firms should keep a lookout at the local pockets of demand for legal services that are not reported widely."
PENALTY KILL? - Tax attorneys are already taking the U.S. Supreme Court up on its new interpretation of penalties associated with taxes on foreign income, a ruling that spells both good and bad news for those with money overseas, Law.com's Brad Kutner reports. In Bittner v. U.S., the high court was asked whether a violation under the Bank Secrecy Act is the failure to file a single annual report, no matter the number of foreign accounts, or whether there is a separate violation for each account that is not properly reported. The majority in Bittner ruled that, under the tax code, penalties for non-willful violations accrue only on a per-report basis. The decision is expected to make big impacts in not only future tax disputes, but also many currently running and possibly even already decided tax penalties cases, according to Kenneth Ahl, a tax attorney with Archer & Greiner, and his co-counsel at the firm, Mark Oberstaedt.
ON THE RADAR - Glancy Prongay & Murray filed a shareholder derivative complaint naming Generac Holdings on Monday in Wisconsin Eastern District Court. The complaint, which targets certain board members, concerns the 'SnapRS,' a safety feature of the company's 'PWRcell' solar power storing system. The complaint contends that the defendants failed to disclose that the SnapRS is defective, tending to overheat, melt or catch fire, causing sales partner Pink Energy to lose $155 million and declare bankruptcy. Counsel have not yet appeared for the defendants. The case is 2:23-cv-00302, Sterbcow et al v. Jagdfeld et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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.
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.
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.
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.
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.
