Cleary Gottlieb Steen & Hamilton London financial regulatory partner Bob Penn is leaving the firm after less than two years to rejoin Allen & Overy (A&O).
Hogan Lovells has confirmed that 54 people have so far been affected by its London redundancy programme, as the consultation period nears its final stage.
The restructuring operation was announced in September 2017, with the firm announcing that 90 roles would be cut or moved to low cost centres. This was made up of 78 business services roles and 12 legal support positions.
In the most recent update, Hogan Lovells said 54 business services staff had left the London office. The Lawyer understands that a number of the business services roles have been relocated to low-cost offices in Johannesburg, Louisville and Birmingham.
A further 17 people are still awaiting their fate under consultation, which is expected to be completed by August at the latest. The departments that have been impacted include conflicts and compliance, finance, IT, knowledge and research, marketing/business development and office services.
Commenting on the UK restructuring, a firm spokesperson said: “This was a carefully considered step focused on improving our business performance and sustainability in a rapidly evolving and competitive legal market.
“In parallel with this project we have also made further significant investments in technology, legal project management and our use of artificial intelligence.”
Days after the firm announced cuts in London, Hogan Lovells said it had offered voluntary retirement to hundreds of US business support staff. The firm said that an estimated 400 employees, who have been with the firm for at least five years, were invited to take voluntary retirement. A small minority were expected to take up the offer of between 5 to 10 per cent of staff.
Fried Frank London finance head Stuart Brinkworth is set to leave the US firm’s City base for Mayer Brown, Leaders in Law can reveal.
Brinkworth joined Fried Frank as its first London finance head in 2015 from Hogan Lovells, where he was a partner in the firm’s City banking practice. He was previously a banking partner at legacy SJ Berwin.
Lisa Osofsky (pictured) has been confirmed as the new director of the Serious Fraud Office (SFO).
Osofsky, who is currently EMEA head of investigations at regulatory compliance company Exiger and is a former deputy GC at the FBI, will take up her new post full-time in September.
Interim SFO director Mark Thompson will remain in the position until Osofsky joins, at which point he will return to his role as chief operating officer.
Osofsky, who has dual UK/US nationality, prosecuted more than 100 cases on behalf of the US Government before joining the private sector.
Commenting on her appointment, Osofsky said: “I look forward to building on the SFO’s successful record in the fight against economic crime and leading an emboldened SFO to even greater heights.”
Thompson added: “Lisa has had a distinguished international career focusing on financial crime in both law enforcement and private sector roles. I look forward to welcoming her and working with her when she takes over the leadership of the SFO.”
Legal Week first named Osofsky as the potential successor to David Green in April, when a number of city white-collar partners with links to the SFO suggested she was in line for the position.
Before joining Exiger in 2013, Osofsky was previously a regulatory adviser at global risk consultancy Control Risks and executive director of the business intelligence group at Goldman Sachs International.
She already has experience of working at the SFO, having previously been seconded to the UK watchdog while working as a special attorney in the fraud section of the criminal division of the US Department of Justice.
In 2017, she voiced her approval of Prime Minister Theresa May’s plans to integrate the SFO into the NCA, telling The Telegraph that the SFO has been on a “knife-edge for years”.
Commenting on her potential appointment, Corker Binning founding partner David Corker, who has acted for many clients being investigated or prosecuted by the SFO, told Legal Week: “I think the SFO remains in jeopardy, and I think this appointment would be an indication of its jeopardy.”
White & Case London white-collar head Jonathan Pickworth, who acts for companies being investigated by the SFO, added: “Lisa ticks a lot of boxes; she is extremely capable and has very broad experience, including time spent at the FBI and at a major financial institution.”
Attorney general Jeremy Wright QC said of her appointment: “The SFO will continue to undertake crucial work to investigate and prosecute serious and complex economic crime, as an independent body that works closely and collaboratively with other UK and international authorities to best protect the public.
“It is clear that economic crime is committed across national boundaries and Lisa’s experience of working at an international level will enhance the SFOs capabilities in this area.”
Previous SFO director, David Green, stepped down on 20 April after six years in the post.
Baker McKenzie has opened a new office in Los Angeles with the hire of a five-partner team from Hogan Lovells.
Hogan Lovells litigation partner Barry Thompson, employment partner Robin Samuel and litigator Joe Ward will launch the firm’s office in the city.
Thompson was an equity partner at legacy Hogan’s Los Angeles office for six years, and led the firm’s California labour and employment practice. Samuel was an office administrative partner at Hogan Lovells for almost eight years, appointed after the legacy firm joined with Lovells. He was a partner at Hogan & Hartson for almost nine years before that, and was an associate at Crosby Heafey Roach & May.
Ward was a senior attorney at Hogan Lovells for over three years, having joined from Jones Day in 2014 where he was an associate.
The remaining two partners, litigators Mark Goodman and Ethan Miller, will be based in the San Francisco office.
Goodman was at Hogan Lovells for over five years, having joined from Squire Patton Boggs in 2012. Miller was at Hogan Lovells for over five years, having joined from Squire Sanders in 2012 where he was a partner since 2004.
Bakers North America managing partner Colin Murray said: “Given our growing presence on the West Coast, and the fact that we already had attorney teams living and working in Southern California, we are solidifying our roots in a market where many California-based Fortune 500 companies have a presence. Los Angeles is also an increasingly important gateway for our clients in Asia.”
Latham & Watkins has received a license from the Korean Ministry of Justice to open a foreign legal consultant office in Seoul.
US giant set to become 28th foreign law firm on the ground in Korea.
Dentons is set to merge with Maclay Murray & Spens from Scotland, adding 258 lawyers to its UKMEA base and bringing the firm’s global headcount up to 8,695 lawyers.
Through this merger, which will complete later this year, Dentons will gain a presence in Aberdeen, Edinburgh, Glasgow and will add headcount to its London base.
According to the UK 200 2016, Maclays had 56.71 full time equivalent fee earners in London, of which 14.5 were partners and 7.8 were full-equity partners during the 2015/16 financial year. The entire team is expected to move to Dentons’ London office by the end of this calendar year.
As part of the deal, four of Maclays’ management team will join the Dentons UKMEA board, including Maclays chief executive Kenneth Shand and chairman Michael Livingston. Shand will also join the regional management committee, which currently has five divisions.
Maclays had previously been in merger talks with Bond Pierce (now Bond Dickinson since its merger in 2013), and was rumoured to have engaged in talks with Addleshaw Goddard and US firm Locke Lord.
Talking to The Lawyer, Shand admitted that the firm “had been interested in expanding its proposition for some time”.
“We are quite a cautious bunch in some ways but ambitious, and we believe we have found a genuinely fascinating opportunity here.
“It will bring us the much greater reach and scale both nationally and internationally that we feel we need to expand our client offering and grow new clients. It will also bring us the firepower to bring tech efficiencies to the business to develop the service we can offer. It expands the career opportunity for our people and people we want to recruit going forward.”
Dentons UKMEA CEO Jeremy Cohen said that his firm had “toyed” for a while to be in Aberdeen to support its oil and gas practice, and said that both firms had a good practice fit, with banking, financial services, energy and infrastructure capabilities.
“For some time we have wanted to grow in the UK,” he said. “Maclays is a great quality firm both in the talent of the lawyers and client base that we can take the Dentons message to.”
Shand said that this merger will allow the firm to be “the only significant player in Scotland” with a presence across all continents. “We will have a real advantage on Scottish national firms,” he said. “It will add global capability to a high quality-combined London and regional model.”
Both Shand and Cohen confirmed that “some partners” would be locked in as part of the merger deal, but would not confirm how many or for how long.
Maclays has yet to provide financial figures for the 2016/17 year, but in the previous round the firm suffered one of the biggest drops in revenue per lawyer, 10 per cent, while revenue per partner dropped by 4 per cent.
The firm’s net profit dropped by 20 per cent last year to £10m, putting it 31.5 per cent lower than it was in 2011/12 and 37.54 per cent lower than in 2007/8.
The firm dropped in equity partner numbers by 13 per cent from 46.6 to 40 during the year and profit per equity partner dropped by 12.4 per cent to £248,000.
Turnover rose by 3 per cent to £44.8m, leaving the firm still 4 per cent below its most recent high of £46.9m in 2011/12 and 27 per cent below the £61.1m posted in its best-ever year, 2007/08.
Watson Farley & Williams (WFW) has taken two partners from Orrick Herrington & Sutcliffe and White & Case.
White & Case partner Louise Mor is joining the firm after six years as a partner at the firm.
She was a member of the US firm’s asset finance practice and joins WFW as a partner in its transport sector group.
Orrick partner Colin Graham is also joining WFW and will be a partner in the firm’s oil and gas sector group, specialising in corporate law.
Graham was a partner at Orrick for nearly three years, having joined from Hogan Lovells where he was of counsel.
Last month WFW announced its global turnover had risen to just shy of the £160m mark in another year of growth at the firm.
The firm’s turnover has been growing steadily over the years, rising 5 per cent in 2015/16.
Mor’s departure from White & Case leaves the firm with three asset finance partners based in London – Adrian Beasley, Justin Benson and Alison Weal.
Orrick meanwhile added to its London energy and corporate capability in 2016, hiring Andrew Kurth partner Peter Roberts in 2016.
Greenberg Traurig has confirmed that it plans to take on a six partner team from King & Wood Mallesons (KWM), after dismissing rumours of a takeover of KWM’s EUME business last month.
The hires, which are subject to “final arrangements”, will include private equity fund partners Steven Cowins and Marc Snell, corporate partners Michael Goldberg and David Fitzgerald, real estate transactional partner Matthew Priday and tax partner Clive Jones. All focus on the real estate sector.
A Greenberg Traurig spokesperson said: “Under Paul Maher’s leadership, we have built a first class office in London, with strong M&A, corporate, tax, capital markets and other areas, including real estate.
“This move will add resources in major firmwide strategic areas of real estate, private equity, M&A and tax.”
These hires come after The Lawyer revealed that Greenberg Traurig joined Dentons in talks to potentially take on chunks of the KWM EUME business in a package deal. The negotiations between KWM and Dentons fell through soon after.
On Monday (12 December) KWM told lawyers and staff they will be paid in January but salaries cannot be guaranteed beyond then.
It is understood news about the February wage slip was communicated to lawyers in the event a successful takeover does not take place.
Last week Barclays took out a second debenture over KWM’s assets that is understood to be more “all encompassing” than the debenture it secured over the summer. The extra layer of security came as it became increasingly likely KWM would enter into a pre-pack administration.
KWM admitted it would need to find a buyer for its EUME arm in November as it emerged its £14m China rescue deal had failed. Only one fifth of the remaining 130 EUME partners agreed to the terms of the deal, which included signing 12-month lock-ins.
The cash injection was needed for the firm to pay its rental liabilities, meet its financial obligations to lenders and pay its January tax bill.
KWM first agreed to improve security around its borrowings from Barclays in the summer, signing a debenture with the lender on 27 July.
The debenture created a series of fixed and floating charges over the firm’s assets, including its revenue stream and real estate.
It also stated the bank can appoint an administrator if KWM fails to meet its financial responsibilities.
In July the firm first voted through a recapitalisation plan, with 98 per cent of partners agreeing to commit in excess of £14m to the business. KWM also asked salaried partners to contribute capital for the first time.
The capital call failed following the shock resignations of four big-hitter partners including head of investment funds Michael Halford and former managing partner Rob Day.
A number of partners have followed in their wake, including former EUME head William Boss, who is moving to Addleshaw Goddard, and head of litigation Craig Pollack, who is understood to be moving to Covington & Burling.
Global managing partner Stuart Fuller also stepped down from his role in recent weeks, returning to fee-earning in Australia. The process to find his successor is ongoing and is due to complete before the end of the year.
KWM is being advised on its restructuring plans by AlixPartners and CMS Cameron McKenna partner Rita Lowe.
King & Wood Mallesons (KWM) has held discussions with US firm Morgan Lewis & Bockius about a global tie-up, it has emerged.
It is understood that talks with Morgan Lewis have taken place during the past few months, with the US firm’s chair Jami Wintz McKeon involved for her firm, opposite KWM global managing partner Stuart Fuller.
One option on the table was a multi-profit centre union, using a Swiss verein structure.
However, is thought that the resignation of high profile City funds partner Michael Halford from KWM may have caused discussions to cool, and it is unclear whether they are still continuing in any form.
KWM has long sought a deal in the US to complete its global footprint, though given the difficulties in finding a suitable partner it had previously switched its focus to a best friends approach.
Were a union to happen, the merged firm would have offices across the US, Europe, Asia and Australia. KWM posted flat global revenue of $1.02bn (£714m) for 2015, while Morgan Lewis posted revenue of $1.844bn.
News of the talks comes as KWM’s new European management team has flown to Asia to speak to the firm’s Chinese leadership about finding a way forward for its European arm, which is under pressure following a series of high profile partner exits.
Europe, UK and Middle East (EUME) managing partner Tim Bednall and senior partner Michael Cziesla – who were voted into their new roles last month – are understood to be in China to discuss options for the European partnership, which could include the Chinese partnership providing some form of financial assistance to the legacy SJ Berwin business.
Halford resigned from the firm last week with three other London partners, leading to KWM halting a planned recapitalisation. The programme was intended to bolster the EUME business – which has debts of £35m – by bringing in more than £14m via a partner capital call. An assessment of the financial impact of the recent resignations is expected to be completed in around three weeks’ time.
Halford was one of four of KWM’s highest billing London partners to resign last week, alongside private equity partner Jonathan Pittal, corporate partner Andrew Wingfield and former managing partner Rob Day. The quartet are understood to have been bringing in around £9m in annual billings.
Departures from the firm are continuing, with news emerging today (4 November) that Squire Patton Boggs has hired London energy partner Neil Upton alongside a team of four lawyers, while earlier this week it was announced that a five-lawyer Germany team – including Germany banking and finance head Sabine Schomaker – is leaving to join Taylor Wessing in Frankfurt.
Morgan Lewis is no stranger to circling firms in financial difficulty. In late 2014, the US firm absorbed the bulk of now-defunct Bingham McCutchen, while it has also hired large groups of lawyers from defunct firms such as California’s Brobeck Phleger & Harrison, Dewey & LeBoeuf, Howrey and Thelen.