Diversity at Elite Law Firms Is So Bad Clients Are Docking Fees

Elite law firms in the U.S. and the U.K., long seen as fusty bastions of mostly White men, are being pushed by some of their biggest customers to change. Facebook, HP, and Novartis are part of a growing number of major global companies that have warned they’ll take their work elsewhere or cut fees unless they see more racial and gender diversity in the law firms they hire.

It’s a serious threat: Facebook Inc. last year spent $1.6 billion on legal fees, settlements, and fines. “Money can make movements,” says Lauren Hauber, a Facebook legal operations manager in San Francisco. ...