Browse >
Home / Archive: March 2009
The plaintiffs lawyers in a shareholder derivative lawsuit involving allegations of stock-options backdating against Cirrus Logic have agreed, in a revised deal filed this month, to drop all attorney fees, which the judge in the case had described as "almost entirely unmerited." The revised deal, which was approved last week, comes as judges in derivative actions involving the backdating of stock options have questioned the amount of attorney fees in cases involving noncash settlements.
In asking the State Commission on Judicial Conduct to dismiss its charges against her, Texas Court of Criminal Appeals Presiding Judge Sharon Keller lays some of the blame for an inmate's execution in 2007 on his lawyers. In her answer to the commission's Notice of Formal Proceedings, Keller alleges she never was told that Michael Richard's lawyers were having computer problems that delayed them in filing for a stay of execution on Sept. 25, 2007, the day that the state executed Richard.
The arguments before the Supreme Court Monday in consolidated cases related to a long-running asbestos litigation packed the Court's lawyers' section with insurance and bankruptcy law practitioners, among others. Former New York Gov. Mario Cuomo, now of counsel at Willkie Farr & Gallagher, was in the audience as well. The arguments were lively, and Justice Ruth Bader Ginsburg, who may have had her first chemotherapy treatment for pancreatic cancer on Friday, was the most aggressive questioner.
With layoffs making headlines, when will law firms be able to thrive again? Managing partners say not soon. Citi Private Bank Law Watch released findings Monday for the first quarter of 2009, showing that managing partners' confidence in their firms' financial health is continuing a downward slide, as client demand keeps shrinking and expenses keep growing. Of about 120 managing partners surveyed from mostly Am Law 100 and Am Law 200 firms, 64 percent believe legal business will drop even more over the next six months.
A new code of conduct for New York attorneys that goes into effect Wednesday should largely be familiar to lawyers who have practiced under the old standards, according to the chairman of the State Bar committee that began developing the new code nearly six years ago. But a member of the State Bar committee said new rules requiring lawyers to reveal client falsehoods "clashes with the common-law concept of the lawyer-client confidentiality," and predicted those rules' validity would be litigated in the courts.
In a rare case of a national class action going to trial, American Express Co. has defeated a consumer class action in California alleging that it overcharged customers as much as $310 million for travel insurance. The win was all the more unusual because it came at the end of the plaintiffs' 11-week trial presentation of evidence and without American Express putting on its case.
Clifford Chance has become the latest firm to announce an associate pay freeze, with the firm holding fee earner and business services salaries at 2008 levels. The Magic Circle firm has implemented the pay freeze globally, citing the current economic climate as a factor. The firm's March qualifiers will continue to receive the 2008 newly qualified salary of 66,600 pounds ($95,500), but September's NQ intake will now be paid 59,000 pounds ($84,600) -- a cut of more than 11 percent.
New York-based Stroock & Stroock & Lavan has joined the list of law firms laying off associates and staff. The firm confirmed that it is cutting 10 percent of its associate positions and 10 percent of its staff positions. However, a spokeswoman for the firm could not provide the precise number of jobs that were eliminated. Stroock, which has offices in New York, Los Angeles and Miami, said the layoffs are firmwide.
Manatt, Phelps & Phillips, citing continued challenges caused by the recession, has laid off 17 lawyers and eight staff members. The Los Angeles firm, which has more than 400 lawyers, said 47 employees had been laid off at the firm since October 2008, prior to the latest announcement. The firm said the laid-off employees would receive financial and other assistance, but declined to be specific.
Reed Smith confirmed Tuesday that it made its second round of economic-based cuts, saying for the first time in this recession that it is letting go of U.S. attorneys as well as staff. The firm cut 17 associates and 55 support staff in the United States late Tuesday morning. It also put nine U.K. associates and 19 U.K. staff members into redundancy consultation, putting the firm's total potential layoff count for the day at 100, according to firm managing partner Gregory Jordan.
Next Page »
