OVERINFLATED - Apparently, the only thing rising faster than law firm prices is the price of everything else. As Law.com’s Andrew Maloney reports, law firm billing rates have increased across all law positions in 2022, but not necessarily enough to keep pace with inflation. That’s according to new reports released this week that point to some more challenges for law firm profits. The average going rate for partners in the U.S. this year is about $749 per hour, an increase from about $738 in 2021 (+1.5%), according to a report from Wolters Kluwer ELM Solutions. Last year, the average going rate for partners rose from about $705 in 2020 (+4.7%). The mean going rate for associates in 2022 is about $546, an increase from $541 the previous year (+0.9%). Last year, the number increased from $503 (+7.6%). And the average going rate for paralegals this year is about $247, an increase from $244 the previous year. The mean going rate last year for paralegals increased from $232 in 2020 (+5.2%). But inflation is still proving to be a challenge for law firm billing rates. Although the consumer price index has increased about 14% since the end of 2019, average law firm rates have increased by about 11% during that time span, according to a separate report from the legal tech company Clio.
TOUGH TALKS - As the IPO window remains shut, tech and life sciences companies and the law firms that serve them are going back to the boardroom—sometimes for difficult discussions, Law.com’s Jessie Yount reports. Late-stage private companies are increasingly employing common cost-cutting measures and contemplating down-round financings, as well as alternatives to traditional equity financings, according to a new report from Wilson Sonsini Goodrich & Rosati. “Capital markets has been robust for the past several years. It occurred to us that some entrepreneurs and investment professionals haven’t been through a down cycle,” according to Wilson Sonsini corporate partner and report co-author Michael Nordtvedt. “We certainly are [in a down cycle] for IPOs and that is trickling down to the private capital markets, so we designed a tool for folks to navigate that market environment.” While companies typically aim to avoid down-rounds because of public perception, Nordtvedt cautioned that alternative financings often include more complex governance and equity terms that can cause problems down the road. He recommended that companies “not get too caught up on valuation” but acknowledged that deals require more nuanced conversations with clients. Jon Avina, a corporate partner at Cooley, agreed. Down-round and more complex financing structures “are transactions that require difficult conversations with clients and investors, especially because people aren’t necessarily thrilled to be paying more advisory fees for a deal that’s already going to be marked down in terms of valuation,” Avina said.
ON THE RADAR - Gaming company International Game Technology and its top officers were hit with a securities class action on Friday in New Jersey District Court. The suit, brought by Pomerantz LLP, accuses the defendants of misleading investors about the company’s compliance with applicable gaming and lottery laws. The suit comes on the heels of an August 29 press release announcing that the company had agreed to pay nearly half a billion dollars to settle claims relating to the operation of the online gambling platform DoubleDown Casino. Counsel have not yet appeared for the defendants. The case is 1:22-cv-06094, Dundas v. International Game Technology PLC et al. Stay up on the latest deals and litigation with the new Law.com Radar.
EDITOR’S PICKS
You Might Like
4 minute read
5 minute read
Law Firms MentionedTrending Stories
More From ALM
Are Next-Gen Legal Leaders the Key to Your Firm's Digital Transformation?Brought to you by Speech Processing Solutions USA Inc.Download Now 
The Ultimate Guide to Automated Redaction for Your Growing BusinessBrought to you by iDox.aiDownload Now
23 Legal Technology Insights for 2023: Annual Trends ReportBrought to you by NetDocumentsDownload Now
Premium SubscriptionWith this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.View Now Team AccountsOur Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.View Now Bundle SubscriptionsGain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.View Now From Data to DecisionsDynamically explore and compare data on law firms, companies, individual lawyers, and industry trends.Exclusive Depth and Reach.Law.com Compass includes access to our exclusive industry reports, combining the unmatched expertise of our analyst team with ALM’s deep bench of proprietary information to provide insights that can’t be found anywhere else.Big Pictures and Fine DetailsLaw.com Compass delivers you the full scope of information, from the rankings of the Am Law 200 and NLJ 500 to intricate details and comparisons of firms’ financials, staffing, clients, news and events.Legalweek New York 2023March 20, 2023 - March 23, 2023New York, NY Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms. Learn More GlobeSt. Multifamily Spring 2023March 27, 2023 - March 28, 2023Miami, FL Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR! Learn More The Asia Legal Awards (ASLA) 2023March 30, 2023Singapore Where the region's top lawyers, law firms and in-house teams will gather to celebrate their most stellar achievements of the year. Learn More Associate AttorneyLooking for an Associate Attorney with 2 to 5 years experience to handle Labor and Employment Law, Pension Appeals and Workers Compensation.... Apply Now › Health Law Associate CTHealth Law Associate CT Shipman is seeking an associate to join our national longstanding health law practice. Candidates must have t... Apply Now › CIVIL LITIGATION ATTORNEY -NEW YORKRegional mid-sized firm with diverse civil litigation practice seeking hardworking and dedicated attorneys with 1-5 years experience for it... Apply Now › SNYDER SARNO D'ANIELLO MACERI & DACOSTA03/13/2023NJLJ Web Snyder Sarno D'Aniello Maceri & daCosta would like to announce that... View Announcement › COLE SCHOTZ P.C.03/13/2023NJLJ Web COLE SCHOTZ P.C. WELCOME HONORABLE GARRY S. ROTHSTADT, J.A.D. (RET.) View Announcement › GREENBAUM ROWE SMITH & DAVIS LLP03/13/2023NJLJ Web GREENBAUM ROWE SMITH & DAVIS LLP would like to announce that... View Announcement › Legal Newswire |
