Programming note: Lookzy will be off the next two weeks, back on November 28th.  Happy Thanksgiving!

Welcome to Lookzy.  Lookzy: all your daily legal news in 0.1 billable hours.  Litigation, deals, lateral moves and industry news; we cover it all. 

In today's Lookzy:

• Gunderson layoffs on more on Cooley

• The DC AG tackles the Commanders

• FTX officially files for bankruptcy

• How the banks are bleeding because of Twitter

GUNDERSON LAYOFFS + MORE ON COOLEY

It's cutting season.

Details have emerged that Gunderson has conducted a second round of layoffs.  As reported by the American Lawyer, the first round took place in September, with 10 corporate associates leaving the firm.  

The second cut took place this week, with another 20 associates being laid off.  Layoffs appear to be focused on corporate associates, many of which are lateral hires from during the pandemic.  The associates sat in NYC and the Bay Area.  

Sources note that these layoffs were not necessarily performance related, as many who were terminated had previously received positive reviews.  Instead, this appears to be tie back to a significant drop in billable hours as a result of the startup and venture capital market, as well as tech and deal work generally.  

Reportedly, some Gunderson associates billed only 10 hours in October.  

This aligns with new details that have emerged regarding Cooley's recent layoffs we reported on previously.  

Cooley had described the cuts taking place following performance reviews, suggesting they were performance-related. Apparently that's not the full story.

As reported by the American Lawyer, a Cooley associate who quit at the time of the layoffs noted, as confirmed by certain outside recruiters, that at least in several cases, the layoffs were entirely billable hours-related.  Many corporate associates at Cooley were billing sub-40 hour months by the end of the Summer (presumably even less now).

Some have suggested these associates are to blame, given their low hours.  But we think that is misplaced.  If you are billing just under your annual minimum, that might be the result of you declining too much work.  But if you're billing 10-40 hours a month, that is a result of there not being enough work available, or some other more drastic scenario.

Our advice?  Take on all work you can.  Even pivoting to restructuring if available and necessary.  Postpone any upcoming vacations.  Be available and proactive.  Build rapport with partners and peers.  

Read our previous coverage here and here.  Stay safe out there.

ECON SNAPSHOT

The difference between special bonuses and layoffs.

THE VERDICT

Arguing today's litigation news

Commanders get tackled.  The DC AG Karl Racine sued the Washington Commanders NFL team, Dan Snyder (the owner), the NFL and NFL Commissioner Roger Goodell under DC consumer protection laws, alleging they colluded to deceive DC residents about an NFL investigation into the team’s toxic workplace culture and allegations of sexual assault.  

Restrained by Vogue. US District Judge Jed Rakoff issued a TRO barring rappers Drake and 21 Savage from using fake copies of Vogue magazine to promote their new album.

Trump and taxes.  Jeffrey McConney, a senior executive serving as controller in the Trump Organization claimed during testimony that former President Trump was aware of allegedly illegal tax practices.

Tequila time. Kendall Jenner settled a trademark infringement suit related to her 818 Tequila brand from 512 Tequila, which claimed Jenner blatantly copied via use of area code and other marketing. 512 is the area code for Austin, TX.

It's always Revlon.  Citi is reportedly in talks to settle litigation against a group of hedge funds and other investment funds, which had been initiated when Citi accidentally used $500 million of its own money to partially pay back a loan Revlon had taken out but wasn't due in full for years.   

THE DEAL

Wheelin' and dealin' today's corporate news

FTX bankruptcy.  FTX Group companies announced this morning they have commenced voluntary Chapter 11 bankruptcy proceedings.  FTX.US, the US regulated arm which avoided much of the initial FTX.com contagion, and Alameda Research, the purportedly separate hedge fund, are both included in this group.  Coinciding with the bankruptcy announcement, FTX announced SBF is stepping down to be replaced by John J. Ray III. 

Forbes for sale.  Forbes is in advance talks to sell itself to a consortium of investors comprising family offices and other investment funds.  The purchase price is expected to be less than the $800 million Forbes had been seeking since Forbes pulled out of a deal to go public via SPAC.  

Australian energy.  Brookfield Asset Management Inc. made a $11.8 billion offer to acquire the Australian utility company Origin Energy Ltd., its latest attempt to own a piece of the energy transition in Australia.

The banks are paying for Twitter.  The seven-bank group led by MS which lent Elon Musk $13 billion for his acquisition of Twitter has been quieting attempting to drum up interest in hedge funds to purchase some or all the debt, but funds reportedly are unwilling to offer more than sixty cents on the dollar.  At those levels, losses would amount to billions of dollars.  Musk warned employees about the possibility of bankruptcy. 

Juul lives another day.  Juul, which had been preparing for Chapter 11 bankruptcy, received a lifeline with a group of early investors agreed to invest more cash into the business.  Juul is also planning to lay off a third of its workforce.  

BUSINESS OF THE FIRM

Lateral Moves: 

• HSBC's former top legal officer Stuart Levey has joined Oracle as EVP and CLO

Industry News:

• Christopher Kamon, the former CFO of defunct law firm Girardi Keese, was arrested over the weekend on a wire fraud charge and hired Skadden's Jessie Liu, a prominent DC defense lawyer and formerly DC's top federal prosecutor.

• Shearman & Sterling cut down the size of its renovated NYC HQ in Midtown East by 225,000 square feet.

• ABA President Jack Rives to step down after 12 years.

• Former Cleary competition practice head John Temple Lang passed away at 85.

BOILERPLATE

Alright, back to billing.  That's all, folks!