Wake Up Call: Magic Circle Law Firms Face Blowback From Tax Raid

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

• UK Chancellor Rachel Reeves is reportedly planning a new 15% tax on profits made by Limited Liability Partnerships, a move that could raise Magic Circle law firms’ tax bills by £250 million and push partners’ effective tax rates above 50%. The proposal, which targets lawyers, accountants, and hedge funds, has drawn sharp criticism from the legal sector, with leaders warning it could drive talent and work overseas, undermine London’s competitiveness, and accelerate the decline of smaller firms. (The Telegraph)
• Arkansas inmate Abdul Maalik Muhammad, represented by the ACLU of Arkansas and Morrison Foerster, reached a settlement with state prison officials ensuring his return to his previous facility from a federal prison and a job in the prison law library, allowing him to continue assisting other inmates with legal work. Muhammad, previously transferred to a federal prison in West Virginia after a failed mediation, alleged the move was retaliation for his successful lawsuits against the Arkansas Department of Corrections, including cases on religious rights and privacy during searches. (Arkansas Times)
• Lewis Brisbois signed a 70,000-square-foot lease at Union Investment’s 140 Broadway, marking one of Lower Manhattan’s largest leases of the third quarter. The move will accommodate more than 200 lawyers when the firm relocates in 2026, completing its transition from 77 Water St., which is being converted to residential use. (CommericalCafe)

Laterals, Moves, In-House

• Amy Proctor joined Sullivan & Cromwell as a partner in its intellectual property practice in Los Angeles. She joins from Irell & Manella.
• Robert Rosenthal joined Greenberg Traurig in as a shareholder in its energy and natural resources and environmental practices in Albany, New York. He joins from the New York Public Service Commission and Department of Public Service.
• Alexandra Garchie joined Gordon Rees Scully Mansukhani as a partner in its commercial litigation practice in Sacramento. She joins from Clark Hill.
• Arturo Ross joined Nelson Mullins Riley & Scarborough as a partner in its litigation group in Miami. He joins from Ogletree Deakins.