Why Big Law Leaders Aren't Sweating Big Profit Drops: The Morning Minute
The news and analysis you need to start your day.
March 29, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
LOWER PROFIT? NO PROBLEM - By now it's no secret that several members of the Am Law 200 weren't able to duplicate the jumps in profits they recorded in 2021 and in many cases saw sizable decreases in their bottom line. Though these double-digit percentage decreases still allowed partners to take home equity profits that in many cases exceeded $1 million, firms' financial results put into question one mandate to firm leaders from many partnerships: grow profits year after year. But law firm leaders told Law.com's Justin Henry that the deal slowdown wasn't the only factor dragging down 2022 profits. Leaders whose firms saw double-digit decreases in profitability say they were a necessary consequence of travel expenses for much-delayed in-person meetings and growth investments expected to pay off in the long-term.
RAISING THE STAKES - A judiciary committee will further look into federal appellate Judge Ralph Erickson's suggestion to tweak current recusal disclosure procedures, stemming from his concern that those on the bench who have holdings in Berkshire Hathaway may face conflict-of-interest issues. As Law.com's Avalon Zoppo reports, the Committee on Civil Rules decided Tuesday to do more research on whether corporations named in lawsuits should be required to share its parent organization as well as "grandparent" organizations that own stake in the parent. Currently, the latter isn't required, and Erickson has said that judges can be unaware they have a financial interest in a case as a result, especially if they hold stock in conglomerates like Berkshire Hathaway or Citigroup that have controlling interest in many smaller companies.
ON THE RADAR - Retail Services WIS Corp., a provider of marketing, inventory and other retail sector services, sued Contract Datascan Holdings Inc., Contract Datascan LP and Gwyn Nicole Snead on March 28 in Texas District Court for Tarrant County. The suit, brought by Winston & Strawn and Kelly Hart & Hallman, alleges claims for unfair competition, theft of confidential information and interference with contractual relations. WIS accuses the defendants of poaching the plaintiff's managers and other employees as part of a campaign to compete against the plaintiff and leverage WIS trade secrets. Counsel have not yet appeared for the defendants. The case is 348-341198-23, Retail Services Wis Corporation Vs Contract Datascan Holdings, Inc. Stay up on the latest deals and litigation with the new Law.com Radar.
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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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