On The Merits

Fenwick & West's decision to seek equity in one of its tech startup clients is now, with the benefit of hindsight, looking like a stroke of genius. Figma Inc. last week had a blockbuster IPO and Fenwick made money not only advising its client on going public, but also through the firm's ownership of almost 900,000 shares in the design and collaboration software company, according to Bloomberg Law reporter Brian Baxter. The value of those shares more than tripled on July 31, Figma's first day of public trading. On this episode of our podcast, On The Merits, Baxter talks about why this type of non-traditional compensation model can make some law firms outside Silicon Valley a bit squeamish. He also talks about how, despite the huge potential upsides, there are financial and ethical risks when a firm owns a stake in its own clients. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Susman Godfrey has shown it's willing to take on high-risk, high-reward lawsuits with unconventional fee structures. Its leaders say this risk appetite is ingrained in the firm's culture. "When we vote to take a case, it is a case of the firm," Kalpana Srinivasan, a managing partner at the firm, said on our podcast, On The Merits. "You hear sometimes there may be other places where there are a couple of partners who are trying to do contingent work or doing something that may be different from the traditional financial model of that firm, and then the success or failure of that matter can be very much tied to that partner. We want to take on risk as a firm." Srinivasan and her co-managing partner, Vineet Bhatia, spoke to Bloomberg Law editor Jessie Kokrda Kamens about their firm's unique culture that shies away from lateral hires, and also about why they bristle at being described as a "litigation boutique." This conversation is a part of our Leading Law Firms project, in which we score law firms using more than just traditional metrics like a firm’s bottom line. Throughout this month, we’ve been sharing interviews with the leaders of other firms like McDermott Will & Emery, Cahill Gordon & Reindel, and DLA Piper. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Neal Katyal and Gurbir Grewal, lawyers who command well over $2,000 an hour for their services, are slashing their rates to defend two New Jersey municipalities against a Justice Department lawsuit over their "sancutary city" policies. This on its own would be noteworthy, but what makes it even more interesting is that their law firm—Manhattan-based Milbank LLP—reached a deal with the White House earlier this year, pledging $100 million in free legal services on shared focus areas to avoid getting hit with a punitive executive order. On this episode of On The Merits, Bloomberg Law reporter Alex Ebert talks about why the Justice Department is suing these cities, just how big of a discount they're getting from Milbank, and whether the work could prompt the White House to rip up its the deal with the firm. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Junior lawyers can climb the ranks faster than ever before, according to DLA Piper leader Frank Ryan, but they also should think about checking their politics at the door. Associates "need to be mindful of over rotating into politics," Ryan, the firm's global co-chair, said in the latest edition of Bloomberg Law's On The Merits podcast. "We live in an overly partisan world. Yes, you have strongly held beliefs—and, yes, those are very important—but your job is to serve others. Whether you like that or don't like that, that is the nature of the profession." Ryan talked with Bloomberg Law editor Jessie Kokrda Kamens about why he thinks younger lawyers can stymie their career advancement by opining publicly on hot button issues. He also explained how his firm is looking to expand “in a much more thoughtful way" after growing to one of the largest in the world. This conversation is a part of our ⁠Leading Law Firms project⁠, in which we score law firms using more than just traditional metrics like a firm’s bottom line. Throughout this month, we’ve been sharing interviews with the leaders of other firms like McDermott Will & Emery and Cahill Gordon & Reindel. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Former Davis Polk associate Ryan Powers started writing op-eds for local newspapers earlier this year criticizing the Trump administration's agenda. A few months later, the Wall Street firm he worked for fired him. Powers' story is one example of how some Big Law lawyers have had to make tough career choices since the president retook office. On this episode of our podcast, On The Merits, Powers speaks with Bloomberg Law reporter Tatyana Monnay about what happened and the purposefully ambiguous reason Davis Polk cited for his dismissal. The firm declined to comment for this podcast. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Herbert Washer pushed Wall Street's Cahill Gordon & Reindel to expand its business after taking the helm, but he doesn't see the century-old firm joining the ranks of Big Law's largest players. "For us, the key has been to pick areas where we can be top of the market," said Washer, who took over from as Cahill’s sole leader last year. "You don't want to enter a market space where you're going to be the tenth most successful law firm." On this episode of our podcast, On The Merits, Washer spoke to Bloomberg Law editor Jessie Kokrda Kamens about what spurred the firm to start playing in the lateral recruiting market, look beyond its leveraged finance roots, and target new types of clients—particularly those with cryptocurrency interests. "Our loyalty has been and always will be, to a large degree, to the banks," Washer said. But a dip in bank activity in the leveraged finance space in 2023 took a bite out of Cahill's bottom line. "It caused us to sort of rethink the overall strategy that had worked so well for so long," he said. The firm bounced back last year, bringing in nearly $464 million in gross revenue and boosting profits per equity partner to $5.3 million. It also added partners in private credit, restructuring, and litigation, among other key practices. Washer would rather excel in the firm's core focus areas than try to be everything to every client. He's wary of expanding too quickly from a headcount of under 300 lawyers, both for business reasons and to preserve the firm's culture. "When a firm gets to 3,000, 4,000, 5,000 lawyers, no one person—no matter how successful they are—is really critical to the operation of the place," he said. This conversation is a part of our Leading Law Firms project, in which we score law firms using more than just traditional metrics like a firm's bottom line. Throughout the rest of this month, we'll be sharing more interviews with the leaders of other firms like DLA Piper and Susman Godfrey. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Activist shareholders can make things difficult for the companies they target. But they represent a significant source of revenue for the law firms that represent those companies—and their shareholders. Bloomberg Law reporters Drew Hutchinson and Andrew Ramonas recently dug through the data on which firms did the most work on shareholder fights in the first half of this year. And Hutchinson talks about what they learned on this episode of our podcast, On The Merits. She said this spring's stock market dip is likely contributing to more activity in this space because it allowed activist investors to purchase more of their target companies at discounted prices. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Latham & Watkins took the perch as Big Law's leading M&A dealmaker in the first half of the year, surging past rival Kirkland & Ellis as things started to look up for firms whose fortunes are closely tied to corporate transactions. Many law firms were expecting a spike in M&A deals in the first quarter of this year, but that largely failed to materialize. Now, with 2025 half over, we're starting to see a lot more activity on this front and firms are reaping the financial benefits. Global deal volume for the first half of the year is up nearly 20% compared to the same time last year, and that includes Meta Platforms' $14 billion investment in Scale AI. In fact, deals involving AI, either directly or indirectly, have been driving a lot of the activity of the past few months, according to reporter Mahira Dayal, who crunched the numbers for Bloomberg Law's quarterly league tables. On this episode of our podcast, On The Merits, Mahira speaks to host Mike Leonard about this and other reasons why the deals market is rebounding after a slow start to the year why it's probably a little too early to start betting against Kirkland. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

McDermott Will & Emery just put the finishing touches on a big merger with another firm, and on today's On The Merits podcast, we speak to the firm's chairman, Ira Coleman, about the firm's audacious goals, why he thinks it's important to listen to everyone in the organization, and the firm's bet on tech. "If you're going to put $30 million in AI this year, you have to have scale," he told podcast host Jessie Kamens. "You can't do that if you're a four or five hundred lawyer firm. It's pretty hard to do it if you're a 1,500 lawyer firm." This conversation is a part of our Leading Law Firms project, in which we score law firms using more than just traditional metrics like a firm's bottom line. Throughout the rest of this month, we'll be sharing more interviews with the leaders of other firms like Cahill Gordon & Reindell, DLA Piper, and Susman Godfrey. Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

Since the Supreme Court's affirmative action ruling, and especially since Donald Trump's anti-DEI campaign, many law firms have swiftly moved to alter or dismantle their programs promoting Diversity, Equity, and Inclusion, or DEI. So where does that leave people like Oyango Snell, a full-throated, unapologetic advocate of DEI in the legal industry? Snell is a former law professor who now runs a legal operations professional group, and he joins our podcast, On The Merits, to talk about how the profession can still achieve diversity despite the DEI backlash, but why he thinks it will "get worse before it gets better." Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.