Wake Up Call: Law Firms’ Strong Profits Expected to Slow in 2025

Welcome to Bloomberg Law’s Wake Up Call, a daily rundown of the top news for lawyers, law firms, and in-house counsel.

• A study from the Thomson Reuters Institute found that law firms’ booming profits in 2024 were driven by strong demand across multiple practice areas, higher billing rates, and the expansion of non-equity partner positions. However, the report also found that potential declines in demand, rising expenses for firms, and the growing influence of generative AI could undermine profitability in 2025. (Reuters)
• Sullivan & Cromwell is adopting a full return to office model, requiring lawyers to be in the office five days a week. Remote work for associates is limited to one day per week with partner approval and only for those on a flexible-time schedule. Junior lawyers “generally will not be authorized to work remotely” and compensation or vacation time will be reduced if a lawyer’s client hours fall short of a full-time schedule while working remotely. (Above the Law)
• A legal battle in Maui over the $4 billion proposed settlement for victims of the 2023 Lahaina fires could decide how funds are divided. Lawyers representing 18,000 plaintiffs argue they should control the majority of the settlement due to their work in initiating the lawsuits, while class action lawyers contend that more funds should be directed to a broader group of victims, including those who haven’t yet filed claims. (Honolulu Civil Beat)

Laterals, Moves, In-House

• John Frantz joined DLA Piper as a partner in its telecom practice in New York. He joins from Verizon.
• Juan Delgado joined Winston & Strawn as a partner in its transactions department in Miami.
• Van Durrer joined Dentons as a partner in its restructuring, insolvency, and bankruptcy practice in Los Angeles.
• Peter Bekker joined Dentons as a partner in its commercial litigation practice in New York.
• Yilin Xu joined Cooley as a capital markets partner. He joins from Skadden.
• Jeff Porter joined Holland & Knight as an environmental partner in its public policy and regulation group in Boston. He joins from Mintz.
• Kimberly Warnica joined APA Corporation as its executive vice president and chief legal officer. She joins from Marathon Oil Corporation.
• Amanda Brown joined Fisher Phillips as a partner in Dallas.
• Gretchen Woodruff joined McGuireWoods as a partner in its litigation practice in Pittsburgh. She joins from Buchanan Ingersoll & Rooney.
• Bryan Clark joined Bracewell as a partner in its energy transition practice group in Dallas. He joins from Pioneer Natural Resources USA.
• Former US Senator Dean Heller joined Venable as a senior policy adviser in Washington.