Law Firms Rake in $235 Million for Virus-Fueled Big Bankruptcies

Here are the day’s top coronavirus stories from the team at Bloomberg Law:

• BIG BANKRUPTCIES: The coronavirus pandemic’s devastating effects on large company balance sheets are paying off for law firms, which made nearly $235 million so far this year on work leading up to the biggest bankruptcy cases. That’s nearly double the amount of cash that firms hauled in for the same type of work in all of 2019.
• VIRTUAL HEARING UPSIDE: For all the downsides of courts forced to go virtual during the pandemic, judges, court staff and lawyers say they’ve discovered one surprise upside: technology can make the justice system—an institution designed to intimidate—much more accessible for children and domestic violence victims.
• PASSING ON THE BAR EXAM: One issue on law firm leaders’ minds right now may be whether dropping the profession’s official measure of “competence” will come at any risk to them, as they hire new attorneys who haven’t taken the exam. Bloomberg Law’s Roy Strom talked with some of the experts most familiar with law firm liability, those who work at insurance companies offering policies to protect firms from professional liability claims.

Editor’s Top Picks

Ann Taylor Parent Files for Bankruptcy, Adds to Retail Wreck
Ascena Retail Group, the owner of the Ann Taylor and Lane Bryant apparel chains, filed for bankruptcy protection on Thursday after its business was thrown into disarray by the pandemic.

U.S. Jobless Claims Rose Last Week for First Time Since March
U.S. jobless claims rose last week for the first time since March, the clearest sign yet of a pause in the economic recovery as coronavirus cases surge in much of the country and force businesses to close their doors once again.

Mnuchin Drops Trump-Favored Payroll Tax Cut to Get GOP Agreement
The Trump administration and Senate Republicans have a “fundamental agreement” on a GOP plan for another round of virus relief, Treasury Secretary Steven Mnuchin said Thursday, after the White House dropped the idea of including a payroll tax cut.

Travelers CEO Says ‘Frivolous’ Lawsuits Undermine U.S. Recovery
Travelers Cos. Chief Executive Officer Alan Schnitzer said he’s encouraged by efforts states and the U.S. government are making to create liability protections for businesses dealing with the outbreak.

Remote Work Means Pay Cuts for White Collar Workers in NYC
Companies in America’s costliest cities are paying at least 40% more for most white-collar jobs than the average wage in other U.S. regions, according to Upwork, a global freelancing platform. But the remote-work trend, accelerated by Covid-19, is likely to change that and potentially reshape the economy in the process.

Competition May Not Be Enough to Keep Covid Shot Costs Down
Pharmaceutical companies are coy about what they’ll charge for an eventual Covid-19 vaccine, and several shots hitting the market at once may not be enough to keep costs down.

Workers at DOL, Other Agencies Join Covid-19 Hazard Pay Lawsuit
A group of workers at the Department of Labor, Social Security Administration, Federal Grain Inspection Service, and parts of the departments of Defense and Homeland Security is seeking hazard pay, asserting in a newly amended lawsuit that their jobs put them at risk for contracting Covid-19.

Fannie-Freddie Risk Bonds Threaten Big Losses for Fund Managers
Hedge funds and mutual funds are among bond holders that could lose $2 billion as a consequence of U.S. lawmakers letting millions of homeowners delay their mortgage payments during the pandemic.

Lloyd’s of London Plans to Insure Covid Vaccine Shipments
Lloyd’s of London, the world’s largest insurance market, plans to begin offering coverage of vaccine deliveries.

Pfizer Vaccine Deal at $20 a Dose Sets Ceiling for Rivals
In signing a $2 billion deal to supply their experimental vaccine to the U.S., Pfizer Inc. and BioNTech SE are setting a price ceiling of less than $20 a dose that will impact how much other companies can charge to protect people from Covid-19.

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Editor’s Note: The Bloomberg Law news team has been closely covering the legal, regulatory, business, and tax implications of the coronavirus pandemic. This daily email highlights the top stories of the day, across practice areas. To unsubscribe, please adjust your Bloomberg Law newsletter settings. For assistance, contact our help desk at 888-560-2529 or help@bloomberglaw.com.