Keep your finger on the legal world's pulse

Attorneys from Morgan & Morgan, the largest injury law firm in the U.S., are facing potential sanctions for citing eight fabricated cases in a Wyoming federal court filing. The incident, which echoes the 2023 Levidow, Levidow & Oberman sanctions, highlights systemic risks in AI reliance. The Wyoming case involved nine cases, eight of which were unlocatable in court records or legal databases. Defence counsel have alleged ChatGPT generated the phantom citations, including fictitious rulings with fabricated identifiers. Judge Kelly Rankin's February 7 order demanded attorneys Rudwin Ayala, Taly Goody (Goody Law Group), and Timothy Michael Morgan produce valid copies of the cases by today or face sanctions.

 

LawFuel

In an early indication of future conflicts between the White House and the courts, Vice President JD Vance and Elon Musk joined a conservative chorus in denouncing U.S. District Federal Judge Paul Engelmayer who has so far limited the ability of Musk allies access to the Treasury Department payment system. Issuing the court order in New York, Engelmayer temporarily barred officials - including political appointees and special government appointees connected to Musk's DOGE - from using the payment system until at least next Friday if they did not have the required background checks and security clearances. Vance suggested that the judge had acted illegally, saying “judges aren’t allowed to control the executive’s legitimate power.” His remarks followed a series of incendiary posts by Musk, who called for the judge’s impeachment.

 

Los Angeles Times

The Wall Street Journal

The 2025 Annual Law Firm Finance Report by BigHand has highlighted the financial challenges facing law firms, revealing that 85% of firms have seen a rise in client demand for financial transparency. The report, based on a survey of 813 senior legal finance professionals, indicates that while many firms achieved double-digit growth, they are also experiencing increased write-offs and discounts. The research found that 72% of firms experienced write-offs last year, with 75% predicting further growth in the year ahead. Meanwhile, 48% of firms noted rising client demand for proof of value.

 

LawFuel

Law firms are increasingly offering extravagant perks to attract and retain talent in a competitive market. These benefits range from standard offerings like healthcare and gym memberships to unique incentives such as tropical getaways and global sports events. For instance, Fenwick & West provides associates with a one-week trip to Hawaii, while Baker McKenzie hosts a global soccer tournament for associate teams from around the world to play and socialize. Elsewhere, Kirkland & Ellis is offering concierge services to assist lawyers with personal tasks, aiming to keep them focused on work.

 

LawFuel

Reed Smith is set to establish a new office in Atlanta, Georgia, by acquiring 37 lawyers from Morris, Manning & Martin and Greenberg Traurig. This includes 15 partners, 20 associates, and two counsels, all of whom will enhance the firm's expertise in corporate, finance, and emerging technology. Morris Manning is losing approximately 20% of its Atlanta partners, although managing partner Simon Malko reassured that the firm remains financially robust.

 

LawFuel

White & Case has enhanced its Global M&A Practice by welcoming four new partners in New York, led by Richard Brand. The new team members, who in addition to Brand include Kiran Kadekar, Erica Hogan, and Jaye Kasper, possess extensive experience in both domestic and cross-border M&A transactions. Kimberly Petillo-Décossard, Co-Head of the Global M&A Practice, observed that “Shareholder activism remains at record levels,” underscoring the importance of the new team in navigating these dynamics.

 

LawFuel

Amazon has agreed to pay nearly $4m to settle allegations that it improperly took tips from its delivery drivers. The settlement follows a lawsuit from the District of Columbia, which claimed Amazon misled customers about how tips were used. According to the lawsuit, Amazon's Flex program, launched in 2015, promised that all tips would go directly to drivers. However, it was alleged that the company changed its payment model in late 2016, using tips to offset its own wage costs without informing drivers or customers. Amazon spokesperson Steve Kelly said: "Like any successful program, Amazon Flex has evolved over time, and this lawsuit relates to a practice we changed more than five years ago."

 

Daily Mail

New York state is facing a lawsuit over a new law mandating fossil fuel companies to contribute $75bn over 25 years to a state fund aimed at addressing climate change damages. West Virginia Attorney General John McCuskey, who described the law as unconstitutional, announced the legal challenge at a press conference. The law, signed by Democratic Governor Kathy Hochul, establishes a "superfund" to transfer the financial burden of climate change mitigation from taxpayers to oil, gas, and coal companies.

 

Reuters

A proposed bill in Iowa seeks to reduce litigation against pesticide manufacturers such as Bayer, which has faced numerous lawsuits linking its product Roundup to non-Hodgkin's lymphoma. Supporters argue it will curb "meritless lawsuits" and ensure farmers can access glyphosate, a widely used herbicide. However, critics, including Senator Tony Bisignano, label the bill a "disgrace," arguing it prioritises corporate interests over public health, especially in a state with high cancer rates.

 

DesMoines Register.com

Coinbase must face a lawsuit from customers who allege the exchange illegally sold securities without proper registration as a broker-dealer. A U.S. judge has ruled that Coinbase qualifies as a "statutory seller," as customers transact directly with the platform. The Securities and Exchange Commission is concurrently suing Coinbase for allowing trading of tokens that should have been registered as securities.

 

Daily Mail

The Trump administration has effectively shut down the Consumer Financial Protection Bureau (CFPB), an agency established to safeguard consumers following the 2008 financial crisis. Russell Vought, the acting director of the Office of Management and Budget, instructed the CFPB to cease all operations, including proposed rules and investigations. He described the agency's current funding of $711.6m as “excessive” and labelled it “unaccountable” in a social media post. The directive follows a similar order from Treasury Secretary Scott Bessent and reflects the administration's broader strategy to limit federal agencies it deems excessive. The CFPB, created by President Barack Obama and championed by Sen. Elizabeth Warren (D-MA), has faced criticism from conservatives and financial institutions since its inception. Under previous director Rohit Chopra, the bureau had implemented rules to cap overdraft fees and protect consumer data.

 

US News and World Report

The Global Lawyer profiles how the Middle East is emerging as a prime legal market, with firms like Bryan Cave Leighton Paisner and Reed Smith announcing expansions in the region. Bryan Cave Leighton Paisner plans to establish two offices in Saudi Arabia, specifically in Riyadh and Al-Khobar. Reed Smith has recently secured a license from the Kingdom’s Ministry of Justice after being active in the region for more than four decades. More than 15 international law firms now have one or more Saudi licences and another 15 applications are pending, according to the International Bar Association. The Global Lawyer adds that firms who already have a presence in the Middle East are now adding more talent. Kirkland & Ellis, Simmons & Simmons, Dentons and Charles Russell Speechlys have all recently added new partners and teams to their practices in the region.

 

The Global Lawyer