Law firms that use a Swiss structure to market operations risk having to bolster conflicts checks or face possible lawsuit damage awards in the tens of millions of dollars.
At least six major U.S. firms affiliate with other law operations under the Swiss verein model to market services globally as if they were a single entity. A pending appeals court decision of a $32.3 million award against Dentons tests whether firms using the structure must do conflicts checks with all affiliate members before taking on a client.
“I’m sure there’s a high level of distress over what happened in this ...