Big Law Layoffs Dampen Economic Outlook in Wake of Covid-19

A pair of large law firms—Baker McKenzie and Davis Wright Tremaine—announced layoffs Tuesday. The moves are likely to deflate some of the cautious optimism in the legal industry amid the continuing uncertainty posed by the coronavirus pandemic.

Mixed Messages: Baker McKenzie said it is laying off 6% of its workforce in North America, while Davis Wright is making some staff furloughs permanent. But the firms also said they’re at least partially undoing pandemic-driven pay cuts for attorneys and staff.

Future Uncertain: Colin Murray, Baker McKenzie’s CEO for North America, said the expectation for more global turbulence well into 2021 is one reason the firm is taking new measures. “We were all relatively sanguine that we would be back on the road to recovery and we’d have stemmed the tide on Covid-19,” he said. “But this has gone on longer than we thought.”

Roy Strom and Meghan Tribe report here and here.

DAILY BRIEF

Law Firms

Irell’s Securities Litigation Chair Heads to Gibson Dunn in LA
Irell & Manella has lost securities litigation practice chair and executive committee member Craig Varnen to Gibson, Dunn & Crutcher in the latest major lateral departure from the high-end litigation boutique.

Kirkland Hires Back DOJ’s Criminal Division Leader Benczkowski
Brian Benczkowski is returning to Kirkland & Ellis after a two-year stint leading the criminal division of the U.S. Department of Justice, a position that saw him spearhead efforts to prosecute coronavirus-related fraud and issue guidance on corporate compliance programs and monitors.

Cozen Nabs Fox Rothschild Lawyers in Bankruptcy Practice Boost
Cozen O’Connor landed eight lawyers from Fox Rothschild in a sharp pandemic-era expansion of its bankruptcy and restructuring practice that now allows it to take on cases of any size, the firm said.

Debevoise, Simpson Advise on KKR’s $4.7 Billion Sale of Epicor
Debevoise & Plimpton is advising New York-based private equity company Clayton, Dubilier & Rice on its acquisition of industry-focused enterprise software vendor Epicor Software Corporation from KKR & Co, the law firm said.

In-House

Animal Health Firm Hires Ex-Big Law Partner, Blockchain Counsel
Covetrus Inc., an animal health services and technology company, hired Jamey Seely as general counsel.

Ethics

U.S. Prosecutor’s Trial Comments Get Contempt Conviction Nixed
An assistant U.S. attorney’s improper remark that a criminal contempt defendant’s silence meant willful defiance of a court order and other improper comments requires vacating his conviction, the Fifth Circuit said.

Follow Bloomberg Law’s global coverage of the coronavirus pandemic on our Coronavirus Outbreak channel, and track the latest changes in the federal court operations with our interactive map.

WAKE-UP CALL

Wake Up Call: More Big Law Firms Cut Jobs Amid Covid-19 Crisis
In today’s column, Wigdor is representing women who accuse Big Four accounting firm Deloitte of punishing them for using parental leave; Wigdor is also among plaintiffs’ firms criticizing a new, reduced settlement offer to Harvey Weinstein victims; Fox Rothschild lost nine bankruptcy and restructuring lawyers to two firms, as the rash of Covid insolvencies keeps heat on the lateral market for bankruptcy expertise; two Big Law firms made major data privacy hires in Brussels, the EU capital and home of the world’s toughest data privacy law.

PRACTITIONER INSIGHTS

INSIGHT: Is an EIDL Right for Your Business?
The Small Business Administration’s management of the Economic Injury Disaster Loan (EIDL) Program under the CARES Act has had several issues. Katharine Meyer, a principal at GKG Law, examines the pros and cons of obtaining an EIDL, including the potential burdens of the collateral requirements and maintaining hazard insurance on that collateral.

INSIGHT: Delivering Innovative, Client-Centric Legal Services During Pandemic
A law firm’s use of new technology can lower the firm’s legal costs and improve how it serves its clients. Shulman Rogers attorney Anthony Millin walks through his firm’s decision to adopt a new tech platform to significantly change its approach to securing new clients and keeping them.

INSIGHT: NFL Limits Off-Duty Conduct to Tackle Covid—Can Your Business?
Employers may seek to limit the off-duty conduct of their workforce to minimize exposure to Covid-19, and the approach taken by the NFL may seem tempting. Porter Wright attorneys explain that efforts to restrict lawful conduct, especially religious observances, during non-working hours and penalize employees must be carefully assessed to minimize risks of legal challenges and violations of federal and state laws.

WORKFLOWS

Holland & Knight announced that Nasim Fussel, who most recently served as Chief International Trade counsel for the Senate Finance Committee, has joined its International Trade Group as a partner in Washington | Arnold & Porter said that Maja Zerjal Fink has joined its Bankruptcy and Restructuring practice as a partner in New York | FisherBroyles has added Steven Anzalone as a partner to the firm’s Intellectual Property and Litigation practices in Washington | Robinson+Cole hired Frederick E. Hedberg as a partner in the Construction Law Group in Hartford, CT | Steptoe & Johnson added privacy and cybersecurity lawyer Charles-Albert Helleputte as a partner in Brussels, along with associate Diletta De Cicco | Skadden announced that former U.S. Attorney for the District of Columbia Jessie K. Liu has joined the litigation practice in Washington | DLA Piper said that German Finance Head Wolfram Distler has returned to the firm from Weil Gotshal | Dechert has hired Claudia Annacker to the International Arbitration practice as a partner in the U.S., and as a consultant pending approval to be a partner of Dechert (Paris) LLP by the Solicitors Regulation Authority.

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