LOWER PROFIT? NO PROBLEM - By now it’s no secret that several members of the Am Law 200 weren’t able to duplicate the jumps in profits they recorded in 2021 and in many cases saw sizable decreases in their bottom line. Though these double-digit percentage decreases still allowed partners to take home equity profits that in many cases exceeded $1 million, firms’ financial results put into question one mandate to firm leaders from many partnerships: grow profits year after year. But law firm leaders told Law.com’s Justin Henry that the deal slowdown wasn’t the only factor dragging down 2022 profits. Leaders whose firms saw double-digit decreases in profitability say they were a necessary consequence of travel expenses for much-delayed in-person meetings and growth investments expected to pay off in the long-term.
RAISING THE STAKES - A judiciary committee will further look into federal appellate Judge Ralph Erickson’s suggestion to tweak current recusal disclosure procedures, stemming from his concern that those on the bench who have holdings in Berkshire Hathaway may face conflict-of-interest issues. As Law.com’s Avalon Zoppo reports, the Committee on Civil Rules decided Tuesday to do more research on whether corporations named in lawsuits should be required to share its parent organization as well as “grandparent” organizations that own stake in the parent. Currently, the latter isn’t required, and Erickson has said that judges can be unaware they have a financial interest in a case as a result, especially if they hold stock in conglomerates like Berkshire Hathaway or Citigroup that have controlling interest in many smaller companies.
