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WHAT WE'RE WATCHING

NO RAIN - Departures of rainmaking partners can destabilize a firm financially. And if those rainmakers take entire practices with them, the foundation becomes even more wobbly for those left behind. Often, this scenario catalyzes a vicious cycle of exits. As Law.com's Justin Henry reports, partners at distressed firms face a question so difficult not even Joe Strummer could answer it: should I stay or should I go? Leaving means contributing to the firm's woes, but sticking it out means possibly going down with the ship. And if the firm goes under, partners are at risk of clawback litigation from creditors, since partner compensation reliably qualifies as fraudulent transfer.

VENDING MACHINE - Last week's ransomware attack on e-discovery provider Casepoint spoke volumes about how bad actors view legal technology vendors right now: basically, it's like when the wolf's tongue rolls out onto the dinner table in Looney Tunes. Large law firms have long been prey for cyber attackers. But, as Law.com's Isha Marathe reports, the recent boom of tech vendors catering to the legal sector has created an even more enticing opportunity for ransomware gangs looking to scoop up more private data in one fell swoop. "My greatest fear is that criminals start going after industry-specific providers," Mark Sangster, chief of strategy at Adlumin, told Marathe. For example, he continued, "say I hit Casepoint, then I hit a document management system. Now, I didn't get just one law firm, but I got 400 or 500 law firms and I did it overnight."

ON THE RADAR - Merck sued the U.S. Department of Health & Human Services and other defendants Tuesday in District of Columbia District Court. The lawsuit, brought by Jones Day, pursues claims that the government's Drug Price Negotiation Program "coerces" drug makers into selling products at lower-than-market prices "on pain of yet more draconian penalties." The case is 1:23-cv-01615, Merck & Co., Inc. v. Becerra et al. Stay up on the latest deals and litigation with the new Law.com Radar.  

EDITOR'S PICKS

What the Legal Industry Can Learn From the Lewis Brisbois-Barber Ranen Shake-up By Alaina Lancaster and Zack Needles

An Open Letter to My Corporate General Counsel Clients on DEI By Karen Kelly

'The Sky Isn't Always Falling': How New Compliance Chiefs Can Win Credibility By Trudy Knockless