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

Welcome to Lookzy.  In today's Lookzy:

• The $20 billion (rejected) bid for Formula 1

• Elizabeth Holmes tried to flee the country

• Shearman's other potential merger target

• A potential new California ethics rule requiring you to report on your colleagues

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THE $20B BID FOR FORMULA1

Reports emerged that Saudi Arabia’s Public Investment Fund (PIF) made an informal $20 billion bid, including debt, to buy Formula 1 from Liberty Media Corp last year.  

Liberty Media was uninterested in selling the F1 franchise, as global interest in F1 has skyrocketed following Netflix's hit show Drive to Survive and more high-profile global events.  

Liberty Media, led by billionaire chairman John Malone, acquired F1 in 2017 for $4.4 billion.  Tracking stock representing the F1 business is currently valued at about $15.2 billion today.  

Saudi Arabia has had significant involvement in F1 in recent years.  Saudi Aramco agreed to a landmark sponsorship deal with F1 in 2020 and numerous races have been held in Saudi Arabia since. 

Saudi Arabia's PIF has been on an acquisition tear in recent years, especially in the sports world, acquiring Newcastle United FC, an English Premier League team, and hosting various golf and boxing events.  Critics suggest the PIF is using such acquisitions as a means of "sportswashing", deflecting attention away from Saudi Arabia's poor human rights records. 

Saudi Arabia's PIF reportedly remains interested in Formula 1 should Liberty Media change its mind and choose sell the franchise.  

ECON SNAPSHOT

The difference between special bonuses and layoffs

THE VERDICT

Arguing today's litigation news

Unserious tweets.  Elon Musk took the stand in the securities class action suit against him and Tesla regarding Musk's "funding secured" tweet, claiming that "Just because I tweet something does not mean people believe it or will act accordingly."  Indeed.  Musk is returning to the stand today.  

Antitrust class action.  District Judge Sarala Nagala in Connecticut denied a motion to dismiss filed by Raytheon's Pratt & Whitney division, Quest Global and other aerospace companies in a consolidated class action suit, allowing the class' claims to move forward that these companies maintained secret no-poach hiring agreements in violation of the Sherman Antitrust Act for nearly a decade.  Crowell & Moring, Latham and Kirkland, among other firms, are representing the various defendants.  

No CLS recusal.  A Manhattan federal judge who attended Columbia Law School will not recuse himself in a lawsuit filed by a proposed class of students against Columbia University regarding the school's removal from the US News and World Report rankings.  

Fleeing the country.  Federal prosecutors urging a California federal judge to deny Theranos founder Elizabeth Holmes's bid to stay out of prison while appealing her case announced that Holmes had apparently tried to flee the country after her conviction, buying a one-way ticket to Mexico.  

Shkreli contempt.  The FTC asked a NY federal judge to hold Martin Shkreli, the disgraced "Pharma Bro" who was released from prison last year, in contempt for failing to turn over documents needed for the FTC's investigation into whether Shkreli violated an order banning him from working in the pharma industry with his new company DrugLike.  Skhreli noted on his Substack that his company is purely software and that his team simply missed the submission deadline because someone was out sick.  

THE DEAL

Wheelin' and dealin' today's corporate news

Barbarians at Salesforce tower.  Activist investor Elliott Management has reportedly built up a multi-billion dollar position in Salesforce, which has faced a decline in share price and layoffs as part of the economic downturn.  So far, Elliott has made no major public demands.  Salesforce has already been battling activist Starboard Value since October 2022.  

PE in Canada.  Thoma Bravo agreed to purchase Canadian cybersecurity company Magnet Forensics for $1.34 billion.  Blake, Cassels & Graydon LLP is representing Magnet, Dentons Canada LLP is representing the Magnet board's special committee, and Kirkland and McMillan LLP are representing Thoma Bravo.  

Swiss sale.  Swiss manufacturer ABB agreed to sell its Power Conversion division to AcBel Polytech for $505 million in cash.  Milbank is representing ABB.  

Crypto bankruptcy pt. 1.  Crypto lender Genesis Global Capital officially filed for Chapter 11 bankruptcy, a long-telegraphed filing following weeks of public tweet-fighting with the Winklevoss twins and SEC charges.  US Bankruptcy Judge Sean Lane in Manhattan is overseeing the case, and Genesis is being represented by Cleary.  

Crypto bankruptcy pt. 2. Sullivan & Cromwell was formally approved to serve as debtor's counsel in the high-profile bankruptcy of crypto exchange FTX.  Judge Dorsey's approval of S&C's representation set aside numerous allegations from insiders and a group of senators of conflicts of interest.  

Merger fees.  US filing fees for mergers under the Hart-Scott-Rodino Act are set to skyrocket as a result of the omnibus spending package approved by Congress in December 2022.  Fees for deals of all sizes will increase, with filing fees for transactions valued over $5 billion jumping from $280,000 to $2.25 million.  The fee increase will be implemented at some point in 2023.  

BUSINESS OF THE FIRM

Lateral Moves: 

• DLA Piper hired partner Oliver Wright from White & Case.

• Goodwin hired partner Sharon Smith from Morgan Lewis.

• Crowell & Moring hired Jason Prince, former chief counsel to the U.S. Treasury Department’s Office of Foreign Assets Control.

• Judge William H. Orrick III of the Northern District of California is taking senior status in May.

Industry News:

• SCOTUS opinions. SCOTUS announced that new opinions will be announced today, the longest time the Court has ever taken between oral arguments and issuing its first opinion. In other SCOTUS news, the Marshal of the Court followed up on SCOTUS' initial report noting that the leaker of the Dobbs opinion was not found, flagging that she spoke to each of the Justices and their spouses as part of the leak investigation but did not make them sign sworn affidavits.

• Shearman merger. New reporting indicates that Hogan Lovells was not the first or only law firm Shearman & Sterling spoke with about a potential merger. Shearman apparently had discussions with multiple other firms, including multiple discussions with Baker Botts.

• GC pay. Qualcomm disclosed that its general counsel, Ann Chaplin, earned nearly $8.4 million in total compensation last year, her first full year with the company.

• California ethics. The California State Bar is considering a new rule requiring lawyers to report on other lawyers' misconduct. The proposed rule is currently open to public comment.

• Speaking of ethics. A former Dentons associate received a 60-day bar suspension after reportedly billing 277 hours to review just 20 documents, arguing that he was planning to go back and do the work he listed on his timesheets.

BOILERPLATE

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