Keep your finger on the legal world's pulse

Brett Shumate is poised to lead the U.S. Department of Justice's Civil Division under President-elect Donald Trump. A partner at Jones Day, Shumate previously served as a senior official in the Civil Division's Federal Programs Branch during Mr. Trump's first term. He has withdrawn from ongoing cases and is set to leave Jones Day on January 17. The Civil Division is the Justice Department's largest litigating section. In addition to defending the U.S. government when agencies or officials are sued, the office also brings cases to enforce U.S. laws and regulations. Shumate has been involved in high-profile litigation, including cases related to Mr. Trump's business interests and immigration policies. Confirmation from the Senate is required before he can assume office.

 

Bloomberg Law

In his farewell address, outgoing U.S. Attorney General Merrick Garland has urged Justice Department employees to remain steadfast in their duties despite facing "unfounded attacks." He emphasized the importance of maintaining the department's independence, saying: "It is the obligation of each of us to follow our norms not only when it is easy, but also when it is hard." He went on to say: "I know that you have faced unfounded attacks simply for doing your jobs, at the very same time you have risked your lives to protect our country from a range of foreign and domestic threats. And I know that a lot is being asked of you right now . . . But before I leave, I have one more thing I want to ask of you. That is to remember who you are, and why you came to work here in the first place." As Garland prepares to step down, concerns loom over the incoming administration's potential impact on judicial independence. President-elect Donald Trump's nominee for attorney general, Pam Bondi, has pledged to uphold the department's integrity. "There will never be an enemies list within the Department of Justice," Bondi told the Senate Judiciary Committee. "I will not politicize that office. I will not target people simply because of their political affiliation."

 

U.S. News

The legal landscape is shifting as the Big Four — Deloitte, PwC, KPMG, and EY — make strides into the legal services sector. Jayne Reardon, a partner at FisherBroyles, observes: “U.S. lawyers are threatened by the possibility of competition with accountancy firms offering legal services.” Recent regulatory changes in Arizona have opened doors for non-lawyers to own law firms, prompting concerns about the Big Four's potential impact on traditional law firms. KPMG Law U.S. is set to provide legal services that complement existing offerings, although it faces geographic limitations due to differing state regulations. Observers believe that while the Big Four may successfully cross-sell legal services, penetrating high-value legal practices will be challenging.

 

Bloomberg Tax

U.S. law firms significantly increased their share of the mergers and acquisitions (M&A) market in the United Kingdom last year, according to data reported by Law.com. Latham & Watkins emerged as the leading legal adviser, completing 116 deals valued at $66.2bn, and capturing 20.4% of the market. Sam Neuhouse, the global vice chair of the firm’s mergers and acquisitions practice, told Law.com that its top ranking reflects “years of building a quality team, our bench strength and our leading position in the market . . . We’re relentlessly ambitious about our future.” Kirkland & Ellis also made strides, moving to fifth place with 11.9% of the market. The report indicates a shift in the landscape, with 14 of the top 20 M&A advisers now U.S.-based, compared to only seven in 2022. Roger Johnson, global co-chair of M&A at Paul Weiss, observed that the firm has over 200 lawyers practising English law in London, enhancing its capability for complex cross-border deals.

 

ABA Journal

David Perlson has joined Hogan Lovells as a partner in its San Francisco office after spending over 24 years at Quinn Emanuel. Perlson, who has represented numerous high-profile tech clients, focuses on commercial litigation, including antitrust and class action lawsuits. He expressed his enthusiasm for the move, saying: “Hogan Lovells is attractive in a number of different ways, one of which is that it's just a completely different model.” He noted that while Quinn Emanuel was litigation-only, Hogan Lovells offers a full-service approach, providing him with opportunities to engage with a broader range of clients and work.

 

Law

Seasoned litigators Kara McCall and Beth Chiarello have transitioned from Sidley Austin to Alston & Bird's newly established Chicago office. Their move, announced on January 16, 2025, is part of Alston & Bird's strategy to strengthen its mass tort and toxic tort capabilities. The Chicago office, which opened in July 2024, initially comprised four lawyers focusing on M&A, real estate, commercial litigation, and white-collar investigations, including former Sidley partners Dave Zampa and Erin Felchner. 

 

Law

In a landmark U.K. class action antitrust trial, Apple's newly appointed chief financial officer, Kevan Parekh, has refuted allegations that the App Store enjoys profit margins of around 75%. He said: "I wouldn't say they're accurate," in response to claims made by barrister Michael Armitage, who cited evidence from U.S. litigation suggesting high operating margins. The £1.5bn ($1.8bn) case, led by class representative Rachael Kent, accuses Apple of monopolistic practices by compelling developers to use its App Store for app distribution. The claimants argue that the "excessive and unfair" commissions charged by Apple are ultimately passed on to consumers. Apple, however, contends that its integrated system offers significant benefits and faces intense competition in the market. London's City AM notes that there are over 20 class actions now active in the U.K. against Apple, Google and its parent firm Alphabet, Microsoft and Meta, with an estimated total of more than £30bn ($36bn) in alleged damages.

 

Financial Times

Techarati

City AM

American Express has agreed to pay about $230m to settle criminal and civil probes into alleged deceptive practices in selling credit card and wire transfer products to small business customers. Harry Chavis, a special agent in charge at the Internal Revenue Service's office in New York, said Amex “misled their customers by touting tax breaks that simply didn't exist." Authorities said an internal probe precipitated the termination of approximately 200 employees in 2021, and the products were discontinued later that year. “Financial institutions like American Express have no business pitching inaccurate tax avoidance schemes to sell products and turn a quick profit,” Judy Philips, acting U.S. Attorney for the Eastern District of New York, said. “This resolution ensures that American Express will be held financially accountable for the unacceptable conduct of its sales employees in misrepresenting the tax benefits of these products. ”

 

Financial Times

OregonLive.com

U.S. News

Four lawsuits have been filed accusing Southern California Edison (SCE) of sparking the Eaton fire. Each suit blames the utility because the fire started under a Southern California Edison transmission tower.  The Eaton fire was one of the deadly blazes that broke out last week amid a historic windstorm. It destroyed hundreds of homes. An official cause for the fire remains to be determined. “We believe that the Eaton fire was ignited because of SCE’s failure to de-energize its overhead wires, which traverse Eaton Canyon,” said attorney Richard Bridgford, who is representing a local homeowner.

 

Reuters

A billion-dollar patent dispute between Gilead and the U.S. government relating to the firm's HIV prevention drugs Truvada and Descovy has been settled. The company's General Counsel Deborah Telman said that the agreement "allows Gilead to continue to focus its resources on its mission to discover, develop, and deliver innovative therapeutics to people with life-threatening diseases." The firm had been accused of ignoring contributions from the Centers for Disease Control and Prevention and exaggerating its own role in developing a HIV-prevention regimen.

 

Reuters

Florida judge William Henry has issued a strongly-worded condemnation of representatives of broadcaster CNN during a defamation case this week. He accused lawyers from the network of issuing "blatant misrepresentations," with CNN's lead counsel David Axelrod singled out for particular criticism after he referred to the plaintiff in the case as a liar a number of times.

 

Daily Mail

In the second of a two-part series examining how the use of artificial intelligence (AI) is being expanded at large firms, Law.com reports that Husch Blackwell has engaged an outside provider to boost its training systems for new attorneys using AI. The move comes as the industry at large considers how to apply the technology responsibly and ethically.

 

Law.com

Thirteen state attorneys general and a group of more than 30 shareholders representing $266bn in funds have urged Walmart chief executive Doug McMillon to rethink the company's recent decision to roll back its diversity, equity, and inclusion (DEI) initiatives. In a public letter, the officials expressed concern over Walmart's closure of its Center for Racial Equity, the cessation of equity training, the phasing out of supplier diversity programs, and the removal of the terms "diversity" and "DEI" from company documents. The letter highlights the significant implications of these changes on the company's commitment to equity and inclusion. Illinois Attorney General Kwame Raoul, a Democrat, said: “There could be economic pressure from the other side of things which is, quite frankly, the majority of the United States. Women and minorities buy as well, have purchasing power as well." He added: “On the heels of George Floyd’s murder, Walmart had stepped forth and said that we’re making a commitment to the very thing that they’re now abandoning. So I question how genuine that commitment was."

 

The Hill

The Baltimore Sun

Bloomberg

The Food and Drug Administration (FDA) has proposed a significant rule to cap nicotine levels in cigarettes, aiming to reduce addiction and help nearly 13m smokers quit within a year. The initiative, supported by antismoking advocates, is unlikely to be enacted soon due to the transition of presidential administrations. President-elect Donald Trump and health secretary nominee Robert F. Kennedy Jr. have not commented on the proposal, which could face legal challenges from tobacco companies including Reynolds American and Altria. The FDA's analysis suggests that limiting nicotine could prevent 48m young people from starting to smoke. The idea of limiting nicotine has its roots in sweeping powers given to the FDA by Congress in 2009 to regulate the tobacco industry. But the FDA's efforts on nicotine and a host of other tobacco measures — such as adding graphic warning labels to cigarette packs — have been hampered for years by tobacco industry lawsuits.

 

Chicago Tribune