Womble Bond Dickinson Layoffs and Cuts Follow Challenging Year

Womble Bond Dickinson is one of the first Big Law firms to disclose it would use pay cuts and layoffs to deal with the economic challenges brought by Covid-19, but sources tell Bloomberg Law the firm has recently struggled against financial headwinds unrelated to the virus.

Earlier Issues: The transatlantic firm suffered from a budget shortfall in 2019, according to several sources with knowledge of its financials, who said the firm had an overly ambitious budget based on previous gains.

Tough Calls: In a statement, the firm explained its choice to make virus-related cuts. “Decisions like these are never easy, but we believe taking these steps now will curb the negative economic impact of the COVID-19 pandemic and keep our firm strong and well-positioned to continue serving our clients at the highest level.”

Meghan Tribe has the story.

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DAILY BRIEF

Law Firms

Reed Smith Slows Partner Draws, Citing ‘Cautious Approach’
Reed Smith is bracing for the economic impact of Covid-19 by slowing the cash distributions it makes to partners, the firm said in a statement.

O’Melveny Retools Leadership in Major Offices, Practice Groups
O’Melveny & Myers has retooled its leadership by elevating at least 15 partners to roles that include office managing partner and practice group chair.

Hogan Lovells Snags Former White House Trade Adviser Shaw
Hogan Lovells is adding Kelly Ann Shaw, a former senior White House official, to its international trade and investment practice as a partner, the firm announced Monday.

U.S. Antitrust Merger Trial Attorney Joins Axinn
Justice Department trial attorney Craig Minerva, who oversaw several high profile antitrust division merger investigations, has joined Axinn, Veltrop & Harkrider LLP.

In-House

Top Lawyers at Kraft Heinz, Philip Morris Earn Big Paychecks
Compensation cuts may be coming to in-house counsel across the U.S. as a result of the Covid-19 pandemic, but recent proxy filings show that 2019 was profitable for some law department leaders.

Business of Law

Virus-Related Legal Disputes Spur N.Y. Push for Free Advice
Lawyers in New York are trying to expand access to free legal advice during an expected increase in coronavirus-related disputes.

Legal Tech

Pandemic-Related Layoffs at Legal Tech Vendor DISCO
An e-discovery company that raised more than $80 million last year has laid off a chunk of its staff over concerns about the economic impacts of coronavirus.

Ethics

Nebraska Lawyer Disbarred For Punching 83-Year-Old Dad in Face
A Nebraska lawyer who pleaded no contest to a felony after punching his elderly father in the face several times 2018 has been disbarred by the state’s supreme court.

Disbarred Alabama Lawyer’s Suit Seeking Reinstatement Rejected
An Alabama lawyer who was disbarred in 2012 for bringing frivolous proceedings and other ethical breaches had his latest suit contesting that disbarment rejected by the state’s highest court.

Judiciary

Trump Taps Wilson in New Try to Fill Fifth Circuit Seat
Mississippi state appeals court judge Cory Wilson is President Donald Trump’s intended pick to fill a vacant seat on the New Orleans-based federal appeals court after Republican opposition derailed the previous nominee, the White House said.

Supreme Court

Supreme Court Website Fails, Temporarily Derailing New Opinion
The U.S. Supreme Court hit a snag in its plan to cope with the coronavirus outbreak, as the court’s website gave readers an error message when they tried to call up a new opinion posted online Monday.

Also in the News

Coronavirus Containment Collides With U.S. Constitutional Rights
People presumed innocent sit locked up in disease-prone jails with no idea when their trials will take place, not when court houses are closed and juries can’t be seated for fear of spreading the coronavirus.

Sweeping Stimulus Law Golden Opportunity for Scam Artists
The sweeping $2 trillion economic stimulus package signed into law by President Donald Trump on March 27 will undoubtedly help millions of people in need, but it is also expected to attract its share of shady operators looking to make a fast buck.

WAKE-UP CALL

New York Probes Video App Used by Home-Bound Lawyers
In today’s column, a new report sees a steep drop in M&A deals for a recent period; more law firms say they’re worried that shutdowns to stem spread of new coronavirus Covid-19 will hit their cash-flow; as a result, one firm announced slower cash distributions to partners; another announced layoffs and pay cuts; while another reduced matching pension contributions; whatever Covid-19 has in store for them this year, top lawyers at some big U.S. companies earned big money last year.

CORONAVIRUS UPDATES

• More than 163,336 people in the U.S. have been diagnosed with Covid-19 and 2,988 people have died. Global confirmed cases of Covid-19 surpass 750,000 worldwide, with deaths topping 37,000.
• Two court security officers in the U.S. District Court for the Eastern District of Michigan were diagnosed with Covid-19, the court announced in a Friday order. A total of ten security staff members reported having symptoms and four have been hospitalized, the court said.
• The Justice Department is reviewing whether Senate Intelligence Chairman Richard Burr and other lawmakers made inappropriate stock trades based on non-public information before the widespread outbreak of the coronavirus in the U.S., according to a person familiar with the matter.
• Trial courts across the country issued orders Monday in response to a provision in the federal government’s pandemic stimulus package that allows courts to use teleconferencing for certain procedures where in-person is typically required. Track the latest changes in court operations using our interactive map, which now includes federal district courts.

Follow Bloomberg Law reporters on Twitter as they track updates from courts across the country with the hashtag #COVID19Courts.

PRACTITIONER INSIGHTS

INSIGHT: Coronavirus-OPEC One-Two Punch Shows Need for U.S. Energy Dominance
American oil companies, already drowning in debt and struggling with the impacts of coronavirus, were blindsided by the recent Saudi-led price war. General James Conway, 34th Commandant of the U.S. Marine Corps, and John Lehman, former U.S. Secretary of the Navy, say Covid-19 and the Saudi-led price war show the U.S. needs a plan for real energy dominance.

INSIGHT: Did Antitrust Enforcers Allow for Creation of Competitive Ecosystem Now Drawing Their Ire?
The prevalence of big tech mergers in recent years has raised the question of whether regulators were ready to handle the complex issues associated with data-oriented acquisitions and “killer” and “zombie” mergers. Robins Kaplan attorneys analyze antitrust implications of big tech deals like the Google-Fitbit merger.

INSIGHT: Applying the CCPA’s New Accessibility Requirements to Privacy Policies
The California Consumer Privacy Act regulations will likely require privacy disclosures to be accessible to consumers with disabilities. Morrison & Foerster attorneys discuss what businesses will be required to do and what “accessibility” means in the context of the CCPA.

INSIGHT: FINRA Guidance Offers Broker-Dealers Minor Relief on Business Continuity Plans
Business continuity plans for securities broker-dealers normally address emergency office relocations and remote work arrangements. Thompson Hine attorneys review recent guidance from FINRA that eases some obligations during the new coronavirus pandemic.

WORKFLOWS

Dickinson Wright added Tenesa S. Powell as Of Counsel in Las Vegas, and Kevin W. DeHart as Of Counsel in Nashville | Foley & Lardner added Andy Lee, former general counsel to the New York Jets, to the New York office as Of Counsel and Special Adviser to the Sports & Entertainment Group; and Lynn Gandhi as a partner in its Business Law Department and Tax, Benefits & Estate Planning Practice Group in Detroit | Allen & Overy said that Paul Keller is rejoining the firm as partner in the intellectual property litigation practice in New York; he rejoins from Norton Rose Fulbright | Buchalter hired insurance law shareholder Bradley Hoff, who becomes group chair of the firm’s insurance coverage practice; he is based in Seattle and arrives from Foster Garvey | DLA Piper grabbed Paul Hastings litigation partner John Phillips as a partner in its northern California litigation practice, based in San Francisco | Haynes and Boone added Silicon Valley business and tax attorney Roger Royse as a partner in Palo Alto from Milbank | Fox Rothschild hired tax & wealth planning lawyer Scott A. Lavin as a partner in New York from Robinson Brogg | Axinn announced that former DOJ Antitrust Division trial attorney Craig Minerva has joined the Antitrust Group as Counsel in Washington.

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