Posts on ‘October 28th, 2009’

The U.S. Chamber of Commerce is launching a critique against those who borrow or lend money to pay for lawsuits, with the release Wednesday of a paper on litigation financing written by three lawyers from Skadden, Arps, Slate, Meagher & Flom. Not to be outdone, the nation’s largest group of trial lawyers released a competing report that highlights examples where they say companies knowingly put consumers’ health or lives at risk.

Cross-border investigations tend to multiply the complex investigatory pitfalls a company faces. These include data privacy laws, attorney-client privilege, conflicting information technology platforms, and document retention policies and practices that fall short of U.S. standards.

Reed Smith has joined a handful of Am Law 100 firms that have dumped lockstep associate promotion and launched a new focus on associate training. The new program will divide associates into three tiers: junior, midlevel and senior. To advance, associates will need to meet a set of competencies. Courses will be available to help associates advance, and partners will be matched with associates to serve as career advisers. Reed Smith said it began work on the program 18 months ago, and it was not a response to the recession.

What’s the cost of not showing up to court? For PepsiCo, it’s a $1.26 billion default judgment. A Wisconsin state court socked the company with the monster award in a case alleging that PepsiCo stole the idea to bottle and sell purified water from two Wisconsin men. Now the company is scrambling to salvage the situation. The damages award was handed down on Sept. 30 — but PepsiCo filed motions to vacate the order and dismiss the claims on Oct. 13, saying it wasn’t even aware of the lawsuit until Oct. 6.

Attorney Gil I. Cornblum, who killed himself Monday in Canada, had leaked insider information while an associate at Sullivan & Cromwell and later as a partner at Dorsey & Whitney, according to a complaint filed by the Securities and Exchange Commission late Tuesday. Cornblum sent former law school classmate Stanko J. Grmovsek non-public information on some 40 mergers and acquisitions that he learned about while on the job at both law firms. All told, the two men made $10 million on the scheme, according to the SEC.

O’Melveny & Myers expanded its New York intellectual property practice Monday by adding a former White & Case partner. The hire of Marc Ackerman was part of a strategic push to build out the national IP practice in certain areas, particularly New York and Washington, D.C., O’Melveny said. Ackerman, the former chair of the sports law committee for the New York City Bar, has a history of representing the National Football League, the National Hockey League and ESPN in copyright and trademark disputes.