Keep your finger on the legal world's pulse

Major law firms, including Gibson Dunn, Baker McKenzie, ArentFox Schiff, and Dorsey & Whitney, have filed a series of lawsuits and arbitration claims in New York, aiming to recover unpaid legal fees from former clients, with amounts ranging from hundreds of thousands to over $2m. These collection efforts coincide with the fourth-quarter push to meet year-end financial targets and partner compensation goals. Legal experts highlight that pursuing unpaid fees through litigation has become more routine in recent years, as law firms face increasing pressure to collect revenue before the close of the fiscal year. The diminishing stigma around filing claims against clients and the significant sums at stake have encouraged firms to take a more aggressive stance in recovering overdue fees. Additionally, rising operational costs and competitive lateral hiring have added to the urgency for law firms to pursue collection actions, particularly as partner compensation is often closely tied to billed revenue.  

 

New York Law Journal

The New Jersey Supreme Court has decided that disbarred lawyers can apply for reinstatement after five years, aligning with 41 other states and the District of Columbia. However, not all disbarred attorneys will be eligible, as the court retains the power to impose permanent disbarment in severe cases. Applicants must demonstrate their fitness to practice law, pass the New Jersey bar exam and the Multistate Professional Responsibility Examination, complete required continuing legal education, and provide a statement of restitution to former clients. Chief Justice Stuart Rabner said: “Going forward, New Jersey’s legal system will have a robust and fair review process that not only protects the public but also affords disbarred attorneys . . . a chance to practice law again after five years.” The decision follows recommendations from the Wade Committee, named after Dionne Larrel Wade, a disbarred lawyer who had previously served underserved clients.

 

ABA Journal

Elon Musk’s X has updated its terms of service to steer any disputes from users of the social media platform to a federal court in Texas whose judges frequently deliver victories to conservative litigants in political cases. New terms of service to take effect on 15 November specify that any lawsuits against X by users must be exclusively filed in the U.S. District Court for the Northern District of Texas or state courts in Tarrant County, Texas. It is common for companies to include venue clauses in their terms of service specifying which forum would hear any disputes filed against them. However, Reuters notes, the choice of the northern district of Texas stands out because X is not located in the district.

 

Reuters

RTX Corporation, formerly known as Raytheon, has agreed to pay the U.S. government $252m to resolve criminal charges related to bribery for contracts in Qatar. The company entered a deferred prosecution agreement for violating the Foreign Corrupt Practices Act and the Arms Export Control Act, also forfeiting $36.6m. During a federal court hearing, RTX pleaded not guilty to the charges but did not contest the allegations. The agreement mandates that RTX demonstrate good conduct for the next 3½ years and promote a culture of ethics and compliance. Court documents reveal that between 2012 and 2016, Raytheon employees paid bribes to a foreign official to secure lucrative contracts with the Qatar Emiri Air Force and Armed Forces, resulting in significant profits from these deals.

 

Boston Globe

Washingtonpost.com

The United States Postal Service (USPS) is facing accusations of retaliation, harassment and intimidation from a longtime employee who alleges she experienced racism on the job. Carla Vinson, who is African-American and who worked for the USPS for 26 years, says she endured "intimidation and bullying" after reporting two white co-workers who allegedly used racial slurs. In an interview with the Guardian, Vinson claimed she had been subjected to “stalking, intimidation, bullying” after she complained about the incident. “I feel as though a company that I have invested so many years in has failed me,” she said. The USPS declined to comment. “It is USPS policy not to comment on pending litigation or internal personnel matters,” a spokesperson said.

 

The Guardian

Matt Garman, chief executive of Amazon's AWS unit, has defended the company's new five-day-per-week in-office policy and suggested those who do not wish to adhere to the rule can quit. "If there are people who just don't work well in that environment and don't want to, that's okay, there are other companies around," said Garman. "By the way, I don't mean that in a bad way," he said, adding "we want to be in an environment where we're working together."  Garman said nine out of 10 workers he has spoken with support the new policy, which takes effect in January. "When we want to really, really innovate on interesting products, I have not seen an ability for us to do that when we're not in-person," he said at an all-hands meeting. The company has been enforcing a three-day in-office policy, but CEO Andy Jassy said last month that Amazon would move to five days to "invent, collaborate and be connected."

 

Reuters

Researchers from the University of Oxford and Google DeepMind have developed an artificial intelligence (AI) system called the "Habermas Machine" which is designed to mediate contentious discussions by generating group statements that reflect both majority and minority views.  In experiments involving over 5,000 participants, the AI-generated statements were preferred 56% of the time over those created by human mediators. The system increased group agreement by an average of 8%, demonstrating its potential to foster dialogue. However, concerns were raised by Dr Melanie Garson, an expert in conflict resolution, regarding the representation of minority views and the lack of opportunity for participants to express their feelings. She emphasized the importance of context in mediation, questioning whether the AI approach truly enhances understanding.

 

The Guardian

Two Sudanese brothers have been charged with running one of the most prolific cyberattack-for-hire gangs, allegedly behind tens of thousands of attacks. Federal prosecutors accused Ahmed Salah Yousif Omer and Alaa Salah Yusuuf Omer of carrying out 35,000 denial-of-service attacks against hundreds of organizations in just one year, taking down websites and other networks as part of an ideologically motivated extortion scheme affecting thousands of customers. The pair targeted high-profile victims worldwide and across the U.S., including Microsoft, ChatGPT, PayPal, X, Yahoo, the Pentagon, the Department of Justice, Alabama's state government, and airports, as well as at least one hospital. The group held a "Sudanese nationalist ideology," Martin Estrada, the U.S. attorney for the Central District of California, said, charging customers $600 or less to launch major attacks.

 

Washingtonpost.com

Stephen Frank, a prominent white-collar crime lawyer, has left the Department of Justice after 17 years to join Quinn Emanuel Urquhart & Sullivan as a partner in their investigations and white-collar criminal defence group. Based in Boston and New York, Frank previously led the securities, financial and cyber fraud unit at the U.S. Attorney's Office for the District of Massachusetts, where he oversaw significant prosecutions, including the Operation Varsity Blues scandal. William Burck, global co-managing partner at Quinn Emanuel, praised Frank's expertise, saying: “[Frank] built a team of prosecutors who brought hugely impactful financial crimes prosecutions.”

 

CDR

Shearman & Sterling has announced the election of 13 new partners across its offices in Hong Kong, London, New York, Paris, Singapore, and Washington, D.C. Senior partner Creighton Condon expressed his delight, saying: “I am delighted to welcome this exceptional group of lawyers to the partnership.” The new partners specialize in various areas, including capital markets, litigation, and international arbitration. Notable new partners include John Adams, who focuses on investment funds in London, and Brian G. Burke, who advises on litigation in Hong Kong. The expansion reflects the firm's stated commitment to its "clients-first" principles and aims to enhance its ability to address complex legal and business challenges.

 

LawFuel

Jenny Speck has joined Vinson & Elkins as a partner in the firm's energy transition and tax practices in Houston. She specializes in advising clients on qualifying for and monetizing energy transition tax incentives. Previously, Speck was with Bracewell.

 

Bloomberg Tax

The Federal Trade Commission (FTC) is addressing the complexities of cancelling online subscriptions with a new rule called Click to Cancel. FTC Commissioner Lina Khan announced that the rule will allow consumers to cancel subscriptions in the same manner and number of steps as they signed up. Khan said: “Over recent years, we've seen increasingly that some firms make it extraordinarily easy to sign up but absurdly difficult to cancel.” The initiative is part of the FTC's Time Is Money campaign, aimed at protecting consumers from time-wasting practices. However, the U.S. Chamber of Commerce has expressed concerns, claiming the rule could “cost the American people more time and money.” Despite the pushback, the FTC aims to eliminate deceptive practices that have plagued consumers, particularly during the COVID pandemic.

 

The Hill

Fast Company

Los Angeles Times

NPR

The U.N. Committee on the Elimination of Discrimination against Women has convened in Geneva to evaluate Japan's gender policies, marking its first review in eight years. Discussions centered on Japan's proposal for a selective dual surname system for married couples and the need to amend the Imperial Household Law to promote gender equality. A committee member highlighted that the current law "negatively impacted women in the workplace and in their private life." The committee's recommendations are not legally binding, but some of them have prompted changes in Japanese laws, such as a rise in the legal marriageable age for women from 16 to 18 to match that for men, and the abolition of the remarriage prohibition period imposed only on women.

 

The Japan Times Online