Law Firms Wield Data to Battle 'Greenwashing' Allegations: The Morning Minute
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August 22, 2022 at 06:00 AM
5 minute read
Corporate Governance
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WHAT WE'RE WATCHING
IT'S NOT EASY BEING GREEN - Regulators and plaintiffs firms want more than just policy statements. As Law.com's Bruce Love reports, law firms are having to prove the data behind their clients' ESG efforts to avoid claims that it's all for show. When shareholder groups started lambasting listed companies for so-called "greenwashing"—professing to be environmentally friendly while acting adversely—Matt Ellis anticipated lawyers would need quantitative proof to combat the claims of activist investors. "Robust, provable ESG data—like carbon usage metrics—is the ready response to allegations of greenwashing," said Ellis, head of Measurabl, which produces ESG data and metrics for the real estate industry. "Without the data, you can't prove your case. So, lawyers needed to become experts in what ESG actually is—and how you measure it." Law firms have certainly noticed this shift. "We're getting a lot more interest in our green credentials when we're submitting pitches," said Michael Bloxham, environment manager at Freshfields. "This year alone we've had twice as many requests on our sustainability scoring platforms as we did all of last year."
INFLATABLE RATES - If inflation remains at current levels, law firm rate increases won't be able to keep pace. But firm leaders may make other "course corrections" to capture profits through the end of 2022, analysts told Law.com's Andrew Maloney. Still, firms will also likely consider heftier rate hikes next year, some said, after a year in which expenses have rebounded considerably from the COVID-19 pandemic. "If you go back the last decade, inflation has been below standard rate increases for the legal industry, so I think that'll be a bigger factor for when firms are budgeting for 2023," said Joe Mendola, senior director of sales for the Wells Fargo group. "And it would be my expectation that at the end of August next year, standard rate increases will be above what they were this time around. Particularly if you're looking at inflation around 8%.
WHO GOT THE WORK?℠ - Charles H. Morgan and Cynthia A. Little of Alston & Bird have stepped in to defend Airgas USA in a pending lawsuit over alleged employment discrimination under the ADA. The action was filed June 23 in Georgia Northern District Court by Barrett & Farahany on behalf of a former accounts receivable specialist who claims that she was unlawfully terminated after requesting an accommodation to work from home amid the COVID-19 pandemic. The case, assigned to U.S. District Judge William M. Ray II, is 1:22-cv-02513, Bruce v. Airgas USA, LLC. >> Read the filing on Law.com Radar and check out the most recent edition of Law.com's Who Got the Work?℠ column to find out which law firms and lawyers are being brought in to handle key cases and close major deals for their clients.
ON THE RADAR - Lottery.com and its top executives were hit with a securities class action Friday in New York Southern District Court following recent disclosures that the company has inadequate cash reserves, has furloughed the majority of its employees and may be forced to liquidate. The suit, backed by Berger Montague, Kirby McInerney, and Levin Law, claims that the defendants misled investors regarding the company's accounting controls, financial performance and its compliance with state and federal laws governing the purchase of lottery tickets. Lottery.com went public in Oct. 2021 through a SPAC merger. Counsel have not yet appeared for the defendants. The case is 1:22-cv-07111, Million v. Lottery.com, Inc. et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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EDITOR'S PICKS
Ready or Not, We're All Heading Into the Metaverse By Zack Needles and Alaina Lancaster |
Utah Court Blocks Law Banning Transgender Girls From Participating on Girls' Sports Teams By Marianna Wharry |
7th Circ. Dismisses EEOC's Pregnancy Discrimination Case Against Walmart By Jason Grant |
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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