Big Law Collections Slow Down: The Morning Minute
The news and analysis you need to start your day.
June 26, 2023 at 06:00 AM
4 minute read
Law Firm Client Relationships
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WHAT WE'RE WATCHING
PAST DUE - You couldn't get away with this year in and year out with your utility providers, but the power dynamic's a little different when it comes to your outside counsel. As 2023 nears its halfway point, law firms are growing increasingly wary about clients being slow to pay their legal bills and the collections process taking longer, Law.com's Andrew Maloney reports. And they are closely monitoring the revenue and collection cycle—an indicator that directly affects firms themselves but also gives them clues about the current state of the economy and how their clients feel about its near future. According to a recent survey, the collection cycle—defined as the "moment the bill goes out the door to when the money comes in"—lengthened by 4% for all firms during the first quarter of the year. Big Law leaders and analysts told Maloney that trend has continued.
MAKE IT YOUR BUSINESS - Law firms talk all the time about the importance of understanding their clients' industries and tailoring their legal advice to those clients' business needs. Unfortunately, according to a recent Thomson Reuters survey, there's still a big difference between knowing what you have to do and actually knowing how to do it. While in-house leaders continue to rely heavily on outside law firms for their knowledge of laws and regulations, many GCs say their own teams have a better understanding of the actual business implications of legal matters, the report found. "Business savviness … is one of the strongest drivers of client satisfaction, yet is an area where many law firms are inconsistent in their delivery," according to the report, which is titled, "Who does it better? In-house teams or outside counsel?" Still, legal observers told Law.com's Trudy Knockless that it's important to remember the value that outside counsel do provide: specialized expertise and a broader perspective that is invaluable.
ON THE RADAR - Mortgage lender LoanDepot.com filed an unfair competition lawsuit against rival Movement Mortgage on Thursday in Delaware District Court. The suit, backed by Littler Mendelson and Cole Schotz, accuses Movement Mortgage of recruiting and hiring the plaintiff's employees in an unlawful effort to misappropriate trade secrets, interfere in loanDepot's business relationships, and induce former loanDepot employees to violate restrictive covenants. Counsel have not yet appeared for the defendant. The case is 1:23-cv-00681, loanDepot.com, LLC v. Movement Mortgage, LLC. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with 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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