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WHAT WE'RE WATCHING

ROADS TO RECOVERY - After one of the most challenging financial periods in recent memory, law firms are starting to regain their footing, according to the latest Law Firm Financial Index from Thomson Reuters. The index, a composite score of performance metrics for law firms, is still in "historically low" territory, the report's analysts wrote. But in Q1, it rose for the first time in a year and a half—up 14 points. The authors noted that it's "not necessarily surprising" that the index rose after Q4. What is surprising, however, is that large firms and smaller firms are contributing to that rise in significantly different ways. "The big takeaway is we are seeing a recovery, but it's a very split recovery," Bill Josten, strategic content manager for Thomson Reuters, told Law.com's Andrew Maloney. "It's not being felt equally by everybody."

CLOSER TO FINE(D)? -  After recent moves by Iowa and Indiana, two more states are poised to add to the patchwork of U.S. data privacy laws this year: Montana and Tennessee. As Law.com's Cassandre Coyer reports, the bills, which currently await signature from their respective state governors, have some unique features but still largely follow the emerging state data privacy standard modeled after Virginia and, before that, a failed Washington state law, reiterating the clear trend toward a possibly unified approach to data privacy regulation among states. "While it's jarring to see so many new privacy laws that are being passed and signed into law, it also feels like we're moving toward a reasonable de facto standard that companies can use to create a nationwide compliance program," said Alessandra Swanson, co-chair of Winston & Strawn's global privacy and data security practice.

ON THE RADAR - Unity Software's top officials were hit with a shareholder derivative lawsuit Monday in Delaware Court of Chancery. The court case, filed by Morris Kandinov LLP and Rigrodsky Law, accuses the defendants of failing to disclose that deficiencies in Unity's product platform reduced the accuracy of its 'Audience Pinpointer' technology, which uses real-time user valuation at the time of an ad request. The lawsuit further alleges that the defendants did not disclose that customers were reducing ad spending with Unity and some customers were leaving for other ad competitors. The case is 2023-0499-, Iting Wen v. Roelof Botha, et al. Stay up on the latest deals and litigation with the new Law.com Radar.

EDITOR'S PICKS

Why Law Firms Need 'Unique' Systems for Feedback By Alaina Lancaster | Zack Needles