Keep your finger on the legal world's pulse

Despite 2025’s 7.4% worked rate increase — far outpacing inflation — law firms may be nearing a pricing ceiling, according to the Law Firm Rates Report 2026 from Thomson Reuters. Firms use varying rate and discount strategies but collect nearly identical per-hour revenues due to market forces, the report found. Client loyalty enables rate hikes, yet has minimal impact on winning new business. “Rates have never been stronger, but concerns are mounting,” the report notes. Long-term growth hinges not on perfect strategy, but on leaders’ ability to align pricing models with firm culture and adjust as conditions shift amid rising client cost sensitivity.

 

Thomson Reuters

Budget mandates and pricing software driving increased billing realization

Nearly three-quarters (70%) of firms experience billing realization increases of 9% or higher on matters with a budget assigned, according to BigHand’s 2025 Trends Analysis for Legal Pricing and Budgeting. The research reveals a growing opportunity for firms to secure client trust and matter profitability through improved financial transparency and new pricing structures.

“It’s time for a widespread shift to outcome-based pricing, which directly reflects the value and results delivered to clients, rather than the time spent,” says Salesforce Senior Vice President Léo Murgel.

Download the full report to explore more pricing insights, including AFA usage, AI efficiencies, and associate commercial training.

 

Thomson Reuters (TR) has announced a partnership with DeepJudge to integrate its AI-knowledge platform into TR's CoCounsel Legal offering. This collaboration aims to unify internal firm knowledge and external content, providing a “360-degree” view of legal insights. DeepJudge's capabilities allow for quick indexing of internal documents, which is crucial for law firms that often struggle with siloed information. However, challenges such as data governance and adoption remain significant hurdles. Paulina Grnarov, CEO of DeepJudge, emphasized that “fast, efficient access to the right information is the foundation for making any AI workflows or agents truly effective.” The partnership signals a shift towards a more integrated approach in legal tech, but its success will depend on effective execution and change management within firms.

 

Legal Tech Monitor

Since the launch of ChatGPT in November 2022, solo and small law firms have faced a surge of ethics opinions regarding AI use and client disclosure obligations. With states like Utah, New Jersey, and Maine enacting laws requiring AI disclosure, firms must be vigilant. For instance, Utah’s Artificial Intelligence Policy Act mandates disclosure for “high-risk artificial intelligence interactions,” while New Jersey imposes penalties for misleading bot communications. Carolyn Elefant, a prominent advocate for solo practitioners, emphasizes that “AI regulation extends far beyond bar association guidance.” Firms must proactively implement clear AI disclosures and maintain compliance documentation to avoid penalties, as these laws can apply extraterritorially, affecting firms regardless of their physical location. As more states consider similar legislation, the compliance landscape will only grow more complex.

 

Above the Law

Law firms are increasingly recognized as custodians of sensitive client information, necessitating a proactive approach to cybersecurity. With one in three law firms at risk of a data breach annually and average incident costs exceeding $5m, the stakes are high. Research indicates that about one-third of breaches stem from third-party vendors, highlighting the need for law firms to adopt robust security measures. Implementing effective strategies not only safeguards data but also enhances client trust and firm reputation.

 

Law

During a recent Philadelphia Bar Association webinar, U.S. District Chief Judge Nancy Rosenstengel emphasized the need for effective communication in mass tort cases. The event featured key figures discussing the coordination between state courts and multidistrict litigation. Tyler Harttraft, a partner at Bull Blockchain Law, remarked: “A verdict here could set the tone for other individuals from traditional industries, who see crypto as a great ‘get-rich-quick opportunity' from a fund launch perspective.” The discussions highlighted the evolving dynamics in the legal landscape, particularly regarding the challenges faced by lawyers of color in leadership roles within multidistrict litigation.

 

Law

The Utah attorney general's office has terminated its relationship with Motley Rice amid allegations of conflicts of interest. OptumRx, a defendant in ongoing opioid litigation, claimed that Motley Rice improperly utilized confidential information from previous cases involving other government entities, including the city of Chicago and the state of Hawaii. Despite a prior ruling by U.S. District Judge Dan Polster, who denied OptumRx's request to disqualify the firm, the attorney general's office decided to sever ties. The abrupt decision highlights the ongoing complexities in the opioid litigation landscape.

 

Law

Alyssa Allen, associate general counsel for global labor and employment at Uber Technologies Inc., has transitioned from her law firm days to a pivotal in-house role since joining the company in 2019. Known for her proactive approach, she emphasized: “You don't want to be the blocker; you want to be the facilitator.” Allen manages legal issues for 30,000 employees across 70 countries, navigating challenges such as immigration policies and DEI amidst changing regulations. Her ability to communicate complex legal matters effectively has earned her a reputation as a trusted advisor within the company.

 

Bloomberg Law

The Supreme Court's unanimous decision in Cunningham v. Cornell has significant implications for the Employee Retirement Income Security Act (ERISA) community, particularly for plan sponsors. The ruling lowers the standard for pleading prohibited transaction claims, potentially leading to more claims surviving motions to dismiss. Justice Samuel Alito expressed concerns about the decision's practical consequences, warning it could lead to “untoward practical results.” The court suggested several civil procedure tools for defendants to combat meritless claims, including challenging standing and limiting discovery. However, these tools remain largely untested in ERISA litigation. Amanda S. Amert, a partner at Willkie Farr & Gallagher, emphasizes the importance of narrowing discovery to reduce litigation costs, as the court encourages district courts to limit expansive discovery in ERISA class actions.

 

Bloomberg Tax

As the government shutdown extends into its fourth week, the SEC has halted the approval of IPOs, causing significant delays for companies eager to go public. Unilever recently postponed the spinoff of its Magnum Ice Cream Co. unit due to this freeze. The IPO market had previously seen a surge, raising over $30bn in September alone. Stacie Aarestad, a partner at Foley Hoag, remarked: “It’s difficult for the company and underwriters to get comfortable with the disclosure because you haven’t had that process come to a conclusion.” The SEC has introduced new guidance allowing companies to file with limited pricing information, but uncertainty looms as the shutdown continues, potentially impacting Chairman Paul Atkins' goal to “make IPOs great again.”

 

Bloomberg Tax

Bloomberg Tax

Yelp has received a significant boost in its antitrust lawsuit against Google LLC, as a California federal court has allowed the case to proceed. Magistrate Judge Susan van Keulen ruled that Yelp's claims, which assert that Google improperly directed users to its own local services instead of allowing them to access Yelp and other platforms, are valid.

 

Bloomberg Law

Nvidia is facing a lawsuit from Arlington Technologies, which claims that several of Nvidia's products, including Maxine, Riva, Broadcast App, and ACE, infringe on its patents related to audio, visual, and speech-enhancement software. The complaint was filed in the U.S. District Court for the Western District of Texas, where Arlington Technologies stated that it had attempted to initiate licensing discussions with Nvidia earlier this month.

 

Bloomberg Law

Meta is facing significant legal challenges as a Washington, D.C., court ruled that the company cannot invoke attorney-client privilege to prevent the use of its internal documents in a lawsuit regarding teen mental health harms. Judge Yvonne Williams determined that the communications in these documents fall under the crime-fraud exception, which could have implications for the ongoing multi-district litigation in California. This ruling highlights the potential risks associated with the company's internal research on the impact of its platforms on youth mental health.

 

Bloomberg Law

Envestnet is facing a lawsuit from investors who allege that the company's former board, during its $4.5bn buyout by Bain Capital LP, relied on conflicted bankers from Morgan Stanley & Co. The investors claim that Morgan Stanley's “allegiance” to Bain led to a flawed process that undervalued the company, resulting in a sale price of $63.15 per share.

 

Bloomberg Law

Yesterday's edition of Legal Slice featured coverage of a legal settlement between Barnes & Thornburg LLP and retired attorney Michael McCrory. We would like to clarify that Mr. McCrory actually claimed he lost more than $250,000 in tax savings, and not $250m as we erroneously reported. We apologize for the error.