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WHAT WE'RE WATCHING

CRIMINAL ACTIONS - Lawyers and claims administrators are increasingly using apps such as PayPal and Venmo to send settlement digital payments to class members. That's great for class members' convenience, but not so hot for keeping out bots and fraudsters looking to get a piece of the pie. As Law.com's Amanda Bronstad reports, bad actors are becoming increasingly sophisticated at making false claims against class action settlements. Still, at the Class Action Law Forum, held earlier this year at the University of San Diego School of Law, panelists agreed that digital payments are here to stay. "Digital payments are going to be the wave of the future," said Stephanie Amin-Giwner, director of client services at Epiq in New York. "There will always be checks, and there are reasons to send checks, especially if it's a higher dollar. But as technology advances and class members advance, we will need to adapt as well."

THE HAVES AND THE ALSO-HAVES - The gap between the highest and lowest-paid equity partners in Big Law has diminished, according to the latest data from The American Lawyer, amid lower profits and higher head count in law firms. Overall, as Law.com's Andrew Maloney reports, median and average partner pay spreads condensed throughout much of the Am Law 200 in 2022, a year plagued by uncertainty. Among Second Hundred firms, the median ratio shrank from 8.9-to-1 to 8.4-to-1, while the average fell several notches from 20-to-1 to 9.5-to-1. Across 100 and 200 segments, the average fell from 15.3 to 9.6-to-1, and the median fell from 9 to 8.6-to-1. Those results come as average profits per equity partner fell 3.7% among Am Law 100 firms and 1.2% amongst the Second Hundred. Meanwhile, both segments also registered gains in head count last year, suggesting some of the squeeze in pay is a result of having more mouths and less pie.

ON THE RADAR - Investment firms Gurnet Point Capital and Novo Holdings A/S have agreed to purchase Paratek Pharmaceuticals Inc., a developer of therapies for life-threatening diseases, for $462 million. The transaction, announced June 6, is expected to close in the third quarter of 2023. Cambridge, Massachusetts-based Gurnet was advised by a Latham & Watkins team led by partners Leah Sauter and Peter Handrinos. Hellerup, Denmark-based Novo was counseled by a Goodwin Procter team steered by partners Matthew Mauney, Kirkie Maswoswe and Dianna Lee. Paratek, which is based in Boston, was represented by a Ropes & Gray team led by partners Chris Comeau, Tara Fisher and Jennifer Rikoski. Sullivan & Cromwell advised Oaktree Capital Management, which provided debt financing for the transaction. Stay up on the latest deals and litigation with the new Law.com Radar.  

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