Lawsuits Target Associates—for Not Being Partners: The Morning Minute
The news and analysis you need to start your day.
October 18, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
DEVELOPING TREND? - Skimping on professional development can cost you—and not just in some abstract way. Two recent lawsuits, both of which have achieved levels of success in court, sought to recover losses allegedly caused by associates who were either underproductive or out of their depth. It's no secret that neither clients nor law firms have the desire to pay a premium for junior attorneys who they don't feel provide proportionate value in return. But what has been somewhat surprising is courts' willingness to allow those disputes to be hashed out through litigation. And, as we explore in the latest Law.com Litigation Trendspotter column, both of these cases also raise questions about what duty law firms have to set their young lawyers up for success. What do you think? Are these lawsuits fair attempts to recoup losses or scapegoating by firms and clients? Let me know at [email protected].
IMAGE ISSUES - As name, image and likeness deals begin to flourish in college athletics, some observers say there is a head-on "collision" coming with Title IX—and colleges should be prepared. College athletes began striking NIL sponsorship deals after the NCAA in June 2020 began allowing them to capitalize on their fame for the first time. Now, alumni and boosters are in what some have termed an "arms race" to give their institutions an edge by forming collectives, which raise money and then funnel it to athletes, but attorneys told Law.com's Colleen Murphy that these arrangements can run afoul of Title IX in several ways.
ON THE RADAR - Vista Outdoor Inc. has agreed to sell its sporting products business to Czechoslovak Group a.s. for an enterprise value of $1.91 billion in an all-cash transaction subject to customary closing conditions. The transaction, announced Oct. 16, is expected to close in 2024. Vista Outdoor was represented by a Cravath, Swaine & Moore team led by partners Aaron M. Gruber, Craig F. Arcella, Bethany A. Pfalzgraf and Stephen M. Kessing. The independent directors of Vista Outdoor were counseled by a Gibson, Dunn & Crutcher team led by partner Jonathan Layne. Czechoslovak Group was advised by Clifford Chance. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.
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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.
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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.
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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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