How Law Firm Client Entertainment Has Changed: The Morning Minute
The news and analysis you need to start your day.
August 30, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
DON'T LIE ABOUT A.I. - The FTC's first-of-its-kind case against Automators LLC could portend more FTC claims against companies that allegedly seek to attract investors with bloated artificial intelligence-related promises, consumer protection lawyers told Law.com's Maydeen Merino. The FTC filed suit this month against Automators' operators, alleging they lured consumers into investing $22 million in online stores with baseless claims about profits. The agency also stated the operators claimed to use "AI machine learning" to maximize earnings. Automators has denied the allegations of wrongdoing. It's the first individual case the FTC has brought related to AI scams and is in keeping with recent agency pronouncements, said Daniel Kaufman, a partner at Baker & Hostetler. "The FTC more so than anything [has] been talking about AI a lot," Kaufman said. "The FTC is looking at these dramatic changes in the marketplace … but it's also looking at it through the lens of how might these changes and these tools be used in ways that violate the FTC Act."
NO MIDDLE FOR MIDSIZE FIRMS - So far, 2023 has been a good year for midsize law firms—well, some midsize law firms. On one hand, they've seen higher demand growth than their Am Law 200 peers. On the other hand, several have shuttered services or are preparing to do so, including Philadelphia-based Schnader Harrison Segal & Lewis and Dolchin Slotkin & Todd; New York-based Ganfer Shore Leeds & Zauderer, and most recently, Phoenix-based Jennings, Strouss & Salmon. As Law.com's Andrew Maloney reports, a variety of factors are contributing to the diverging trajectories of midsize law firms this year, according to analysts. Some are seeing success because of their additional flexibility and remote work opportunities for talent, the rise of countercyclical practices, and aggressive rate hikes. But this segment of the market is still vulnerable to large, existential threats, such as aging lawyers, a lack of succession planning, and less diversity of client business—any one of which could topple a smaller firm.
ON THE RADAR - Antoine Fuqua, director of "Training Day" and other major films, Sony Pictures Entertainment and other defendants were slapped with a lawsuit alleging breach of oral contract on Aug. 28 in California Superior Court for Los Angeles County. The court action was filed by attorney Philip J. Kaplan on behalf of Paul Lozada, a highly decorated former San Francisco police officer known for working as a "script doctor" on Fuqua's films. Lozada claims he has been denied credit and not been paid for consulting on the upcoming "Equalizer" sequel with Denzel Washington. Counsel have not yet appeared for the defendants. The case is 23STCV20557, Lozada v. Fuqua. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.
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Who Got The Work
Dechert partners Andrew J. Levander, Angela M. Liu and Neil A. Steiner have stepped in to defend Arbor Realty Trust and certain executives in a pending securities class action. The complaint, filed July 31 in New York Eastern District Court by Levi & Korsinsky, contends that the defendants concealed a 'toxic' mobile home portfolio, vastly overstated collateral in regards to the company's loans and failed to disclose an investigation of the company by the FBI. The case, assigned to U.S. District Judge Pamela K. Chen, is 1:24-cv-05347, Martin v. Arbor Realty Trust, Inc. et al.
Who Got The Work
Arthur G. Jakoby, Ryan Feeney and Maxim M.L. Nowak from Herrick Feinstein have stepped in to defend Charles Dilluvio and Seacor Capital in a pending securities lawsuit. The complaint, filed Sept. 30 in New York Southern District Court by the Securities and Exchange Commission, accuses the defendants of using consulting agreements, attorney opinion letters and other mechanisms to skirt regulations limiting stock sales by affiliate companies and allowing the defendants to unlawfully profit from sales of Enzolytics stock. The case, assigned to U.S. District Judge Andrew L. Carter Jr., is 1:24-cv-07362, Securities and Exchange Commission v. Zhabilov et al.
Who Got The Work
Clark Hill members Vincent Roskovensky and Kevin B. Watson have entered appearances for Architectural Steel and Associated Products in a pending environmental lawsuit. The complaint, filed Aug. 27 in Pennsylvania Eastern District Court by Brodsky & Smith on behalf of Hung Trinh, accuses the defendant of discharging polluted stormwater from its steel facility without a permit in violation of the Clean Water Act. The case, assigned to U.S. District Judge Gerald J. Pappert, is 2:24-cv-04490, Trinh v. Architectural Steel And Associated Products, Inc.
Who Got The Work
Michael R. Yellin of Cole Schotz has entered an appearance for S2 d/b/a the Shoe Surgeon, Dominic Chambrone a/k/a Dominic Ciambrone and other defendants in a pending trademark infringement lawsuit. The case, filed July 15 in New York Southern District Court by DLA Piper on behalf of Nike, seeks to enjoin Ciambrone and the other defendants in their attempts to build an 'entire multifaceted' retail empire through their unauthorized use of Nike’s trademark rights. The case, assigned to U.S. District Judge Naomi Reice Buchwald, is 1:24-cv-05307, Nike Inc. v. S2, Inc. et al.
Who Got The Work
Sullivan & Cromwell partner Adam S. Paris has entered an appearance for Orthofix Medical in a pending securities class action arising from a proposed acquisition of SeaSpine by Orthofix. The suit, filed Sept. 6 in California Southern District Court, by Girard Sharp and the Hall Firm, contends that the offering materials and related oral communications contained untrue statements of material fact. According to the complaint, the defendants made a series of misrepresentations about Orthofix’s disclosure controls and internal controls over financial reporting and ethical compliance. The case, assigned to U.S. District Judge Linda Lopez, is 3:24-cv-01593, O'Hara v. Orthofix Medical Inc. et al.
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