Posts on ‘January 22nd, 2009’

Three judges on the 2nd U.S. Circuit Court of Appeals will hear arguments today into whether restrictions put on lawyer advertising by New York courts in 2007 violate attorneys’ constitutional right to free speech. Among the rules struck down were those prohibiting firms’ use of nicknames or monikers such as the “Heavy Hitters”; use of clients in testimonials; portrayals of judges in ads; and the use of pop-up ads on Web sites other than a firm’s own site.

New York Attorney General Andrew Cuomo has launched a two-pronged probe of a prominent New York financier who invested the money of universities and charities with Bernard H. Madoff, who allegedly operated a massive Ponzi scheme. Cuomo’s probe of J. Ezra Merkin could take on added importance from a decision argued last Friday before the 2nd Circuit, which, if affirmed, could make it more difficult to bring private lawsuits against “feeder” funds such as the three managed by Merkin, Ascot, Ariel and Gabriel.

In the recent case , the 9th Circuit reached a holding that could have far-reaching implications with respect to litigation risk for companies making standard warranties and representations to each other in merger agreements when that merger agreement is disclosed to the public as part of a Securities and Exchange Commission filing. Attorneys Thomas C. Newkirk, Iris E. Bennett and Taj N. Wilson examine the issues involved.

In part two of a five-part series, video marketing guru Gerry Oginski offers this advice: Do not talk about how difficult your area of law is. Viewers aren’t interested in how specialized or arcane your practice is. It’s a waste of breath and a great way to lose a potential client.

Despite gloomy forecasts from legal consultants, some firms have been able to overcome the economic downturn. Wilmer Cutler Pickering Hale and Dorr reported 2008 growth, albeit minimal, with revenue and profits per partner increases. The firm’s revenue of $955 million was up 1.2 percent from 2007, and its profits per partner total went up 1.44 percent, to $1.08 million. And while other firms have announced salary freezes for associates in 2009, Wilmer says it will move forward with salary increases.

Republicans have delayed for one week a Senate committee vote on Eric Holder Jr.’s attorney general nomination, giving them more time to pore over his long record and force him to answer questions in writing about policies he would pursue at the Justice Department. Senate Judiciary Committee Chairman Patrick Leahy expressed frustration at the delay, but ranking GOP member Sen. Arlen Specter said he wants to know more about Holder’s views on national security, detainee policies and corporate fraud.

Attorney Marc S. Dreier, whose life has “completely unraveled” since his arrest, should remain behind bars since he has “little to lose by fleeing,” the government wrote Wednesday in opposing Dreier’s second bid for bail. In a brief filed in anticipation of today’s bail hearing, Assistant U.S. Attorney Jonathan Streeter argued that the same “resourcefulness” Dreier showed in pulling off a scheme that “fooled some of the most sophisticated investors” could “easily be committed to fleeing and living abroad.”

Citing an uncertain economy, Cooley Godward Kronish axed 52 lawyers and 62 staff Wednesday. The 725-lawyer firm cut associates, including some who had just started this fall, and three special counsel. Practice areas most affected by the layoffs are those hardest hit in the economic downturn: corporate, transactional and public securities. Although the firm finished up a relatively strong year, with 14 percent growth in revenue, Cooley CEO Joseph Conroy said the cuts came in planning for the upcoming year.

Bad economic times create opportunities for strong companies to poach good employees from a weakened competitor. Attorney David Walton offers steps that companies and their counsel can take to prevent trade secret theft and to act effectively if they believe a departing or new employee has stolen critical information. Whether you’re the company losing the employee or the new employer, these steps could improve your legal position and ultimately minimize the threat to your business.