What to Expect in a ‘Grueling’ Second Half for Big Law Firms

Law firms’ first half financial results are in, and they are much better than most partners would have guessed just a few months ago. That’s especially true for the largest firms in the country, which may be gearing up for a lateral partner shopping spree in the New Year.

Halfway Home: “If you’re two laps into the race, and the race is going to be grueling, at least you started with good momentum,” said Jeff Grossman, Citi Private Bank’s Law Firm Group head of business development and client strategy.

Themes Emerging: The second half will be more challenging as a build-up of unpaid bills that drove growth earlier in the year has leveled off. Leaders will continue to focus on cutting expenses. For the firms that manage to out-perform, there may be “bonuses” to lawyers and staff whose salaries were cut earlier in the year. Roy Strom has more in this week’s Big Law Business column.

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DAILY BRIEF

Law Firms

Fox Rothschild Rolls Back Some Pandemic Austerity Measures
Fox Rothschild is the latest law firm to roll back some of the financial precautions it put in place in the early spring due to coronavirus, announcing it will restore half the reductions in monthly partner draws and half of attorney and staff salary reductions.

Law Firms Giving Election Day Time Off to Boost Participation
Mintz Levin managing partner Bob Bodian says the long lines voters have encountered in recent primaries helped convince him that the firm should do more to accommodate people’s ability to vote. He’s not alone.

In-House

Plaid Picks Up Former CFPB Legal Chief as New Top Lawyer
Plaid Inc., a fintech company set to be absorbed by Visa Inc., has hired former Consumer Financial Protection Bureau general counsel Meredith Fuchs to serve as its legal chief.

Cannabis Companies Tap Top Lawyers as CEOs Amid Legal Challenges
A pair of in-house lawyers with high hopes for legal cannabis products are moving up in the C-suite, while a longtime health and fitness industry legal chief has found a home in the legal weed space.

Ethics

Ohio Lawyer Who Wanted Client to Withdraw Complaint Suspended
A Cincinnati lawyer who was charged with ethics violations while on probation for misconduct in 2016 that led to a felony conviction was suspended for two years by the state’s highest court.

Northern N.Y. Federal Court Has Had Enough of ‘Copyright Troll’
Alleged “copyright troll” attorney Richard Liebowitz could be removed from the roll of the U.S. District Court for the Northern District of New York based on its recommendation Tuesday.

Judiciary

Federal Trial Court Pending Caseload Up 30% From Last Year
Federal trial courts had roughly 30% more pending cases as of June 30 compared to the same point last year, according to new statistics from the Administrative Office of the U.S. Courts.

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

Note: The Wake Up Call is taking a brief hiatus starting Aug. 17 and will return on Aug. 31.

PRACTITIONER INSIGHTS

INSIGHT: Federal Banks Get OK to Provide Services for Crypto Assets
Federal banks and thrift institutions can now offer cryptocurrency custody services for customers, according to the Office of the Comptroller of the Currency. Withers LLP attorneys break down key takeaways from the announcement, including how private clients with crypto assets will benefit when it comes to current and estate planning purposes.

INSIGHT: Law Firms Need ‘Re-Set’ to Commit to Hiring Black Attorneys
Law firms committed to the spirit of the Black Lives Matter movement need to take active steps to increase the number of Black attorneys they hire, says Major, Lindsey & Africa‘s Rhonda Ware. They need to understand the “why” behind the effort and then align expectations for executing a concrete plan.

WORKFLOWS

Katten hired securities industry attorney Paul McCurdy as a partner in the Financial Markets and Regulatory Practice in New York | Charles Pesant joined Paul Weiss as a partner in the Corporate department and the Securitization practice group in New York | Williams Mullen has added Kevin Bender as an associate in the Estate Planning: Private Client & Fiduciary Services Practice in Richmond, VA | Hinshaw & Culbertson hired Amy DuMond Kottke as a partner in the Commercial Transactions group in Minneapolis from Monroe Moxness Berg | Fox Rothschild added Gray I. Mateo-Harris (Partner) and Kelsey J. Schmidt (Associate) to the Labor & Employment Department in Chicago | Womble Bond Dickinson hired tax, trusts and estates attorney Anne Kelley Russell to the Charleston, SC office | Porter Wright added Matthew Matheney and Nathaniel Sinn as partners in the Bankruptcy, Workout and Creditor’s Rights practice group in Cleveland.

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