Big Law Layoffs are Resulting in Problematic Severance Agreements: The Morning Minute
The news and analysis you need to start your day.
April 07, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
WHAT CAN I SAY? - Law firm layoffs and attorney cuts in recent weeks have brought renewed attention to the restrictive severance agreements that lawyers often sign when they're let go, Law.com's Justin Henry reports. Severance money in exchange for signing a non-disparagement or confidentiality agreement is a requirement of many law firms in the Am Law 100 to avoid the negative optics that attend downsizing employee ranks, according to sources in contact with recently let-go associates.at various firms. But in an environment in which performance reviews are used as a pretext to right-size associate ranks, many associates have been caught between their former firm's demand for staying quiet about being let go and their prospective future firm's demand for transparency.
CAP CONTROVERSY - Bipartisan efforts in both the House and Senate aim to add a cap to attorneys fees on lawsuits linked to exposure to toxic chemicals at a North Carolina marine base. But attorneys who are already working with clients to get some of the $6.1 billion made available via legislation passed last summer told Law.com's Brad Kutner that the suggested caps are unreasonably low and the market will better police the process. "These are individual cases; every one is unique," said Baird Mandalas Brockstedt Federico & Cardea partner Philip Federico in a phone interview, about the effort his firm has already put in for the clients he's representing in Camp Lejeune claims. But, as Federico and other attorneys pointed out, the individual nature of every claimant and the law's language precluding class action claims will require a lot of work.
ON THE RADAR - ByteDance, Facebook, Google, TikTok and other defendants were hit with a product liability lawsuit Thursday in Kentucky Eastern District Court. The lawsuit, over the impact of social media on student mental health, was filed by Hendy Johnson Vaughn Emery on behalf of the Harrison County Board of Education. The school district seeks additional funding "to implement potentially lifesaving programs in the face of this ever-increasing mental health crisis that the defendants helped create." Counsel have not yet appeared for the defendants. The case is 5:23-cv-00109, Harrison County Board of Education v. Meta Platforms. 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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