Firms Face Tough Questions About Single-Tier Partnerships: The Morning Minute
Want to get this daily news briefing by email? Here's the sign-up. WHAT WE'RE WATCHING TIERS FOR FEARS - As profits have grown, the U.S.'s…
November 02, 2023 at 06:00 AM
4 minute read
Professional Culture
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WHAT WE'RE WATCHING
TIERS FOR FEARS - As profits have grown, the U.S.'s highest-earning law firms have begun worrying whether a single equity tier of partners can sustain such wide disparities in financial contribution. As Law.com's Justin Henry reports, that has their leaders now weighing the pros and cons of adopting a nonequity tier. Even Paul Weiss Rifkind Wharton & Garrison, which has long maintained a single-tier partnership, is considering a non-equity tier as early as 2024 in an effort to keeps its counsel-level attorneys from moving to competitors. "It is signaling further departure from single-tier lockstep that has traditionally been in place with many Wall Street firms," said recruiter Dan Binstock, a partner with search firm Garrison. "The more those profits rise, it gets harder for partners in certain practice areas to have practices at that size."
DWINDLING SUPPORT? - Earlier this year, partners said a lack of associate support to build their practice was the third most likely reason they'd leave a firm, just behind a lack of confidence in a firm's management or strategy and compensation, according to the 2023 Lateral Partner Satisfaction Survey from Major, Lindsey & Africa. At the same time, the top reason partners said they chose their new firm was its perceived ability to support and elevate their practice. Those concerns clearly aren't new, and yet, as Law.com's Jessie Yount reports, more recent observations from legal recruiters reveal that the number of partners falling into that third bucket may be growing as firms struggle to provide partners with adequate associate support.
ON THE RADAR - Ocean Spray Cranberries was named in a consumer class action Oct. 31 in California Northern District Court over the labeling of its cranberry juice as containing no preservatives. The suit, filed by Crosner Legal, alleges that the label of 'no preservatives' is fraudulent as the juice contains citric acid. Counsel have not yet appeared for the defendant. The case is 4:23-cv-05627, Wright v. Ocean Spray Cranberries, Inc. 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
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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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