What's Going on at Reed Smith?
The law firm of Reed Smith -- which, as its Google listing reminds us, is "[o]ne of the 15 largest law firms in the world" -- has been in the news a lot lately. Here's a quick recap.
Some of the news has been good, and some not-so-good. Let's get the bad news over with first.
Last month, a Pennsylvania state court judge gave the green light to an overbilling lawsuit brought by a former Reed Smith client -- a non-profit organization, no less. From the Pittsburgh Tribune-Review:
A Lawrence County Common Pleas Court judge rejected four of five objections by the Downtown law firm Reed Smith, which was sued by a youth foster-care foundation in a dispute over fees.Bair Foundation, New Wilmington, Lawrence County, sued Reed Smith in November for billing it nearly $1 million -- in contrast to the firm's early estimate of $112,000 in legal costs -- to defend the foundation in an employment discrimination lawsuit, according to the complaint.
The $112,000 was a revised estimate; the original estimate, according to the complaint, was $50,000. And Reed Smith's client ended up losing in the underlying lawsuit.
According to Am Law Daily, "[t]he matter has turned into something of a public relations nightmare for Reed Smith.... The complaint paints a picture of a billing machine run amok." For its part, the firm denies the allegations and claims that it "will prevail."
More Reed Smith news, after the jump.
This next news item is both good and and. From the Pittsburgh Post-Gazette:
Most of Reed Smith's American and European offices aren't open when the firm's Beijing and Hong Kong personnel start their business days. But though the Asian offices are 12 hours ahead of Eastern Standard Time, attorneys and staff there can call on the law firm's Pittsburgh headquarters any time of the day or night to track documents, process dictation or send out a bulk mailing.The uninterrupted connection between Reed Smith's flagship and its 23 other offices worldwide is made possible by a business center in the Gulf Tower, Downtown, that operates 24 hours, seven days a week.
The article paints a happy picture of efficiency; the resulting layoffs get little mention. One tipster complains: "[T]he global, around-the-clock global business center gets top billing, and the fact that 21 secretaries in one office were fired is buried towards the end of the article."
But that's the way of the world. To quote the Fried Frank defender:
Are law firms now not allowed to conduct themselves in a fiscally responsible manner without being called out for it?.... If there are roles that are no longer needed at the firm, the firm should cut those costs. Is the firm supposed to keep people on its payroll indefinitely, even if the firm no longer needs those services?
And now, the good news. First, SEC litigatrix Amy Greer has joined the firm, after five years at the Commission.
Second, it sounds like Reed Smith put on a fun program for its summer associates. In July, they took summers out to a drag show called Martha Graham Cracker.
"Pretty unusual for a law firm, but everyone had a good time," according to our tipster. "Maybe not as cool as [Simpson Thacher's] private Dark Knight showing, but definitely better than [Weil's] circus black tie event."
Judge frowns on Reed Smith in lawsuit over billing [Pittsburgh Tribune-Review]
Former Client's Overbilling Suit Against Reed Smith Can Continue [Legal Intelligencer]
Reed Smith Loses Round One of Overbilling Lawsuit [Am Law Daily]
Reed Smith's 24/7 office maintains constant connection for two dozen international sites [Pittsburgh Post-Gazette]
SEC litigator returns to private practice at Reed Smith [National Law Journal]
(38) Comments
firsty
How is it that the 15th largest law firm is a place I have barely heard of?
RS = Oleen
#2 - because you are an idiot.
The Dark Knight showing wasn't that cool - anyone can pay a theater to do that - and it's not even that expensive! Stop using that as your baseline for coolness.
Guys in my high school used to not hear about the largest 15 law firms in the world. It was no big deal.
Reed Smith = TTT
5: It's a bit more impressive than that, since S&T's private showing was ahead of the film's wide release.
Is Time Warner a client? How else do you swing that?
i enjoy the company of shelled reptiles.
Reed Smith = shittaaay
FIRST to wonder where today's Non-Sequiturs are.
"5: It's a bit more impressive than that, since S&T's private showing was ahead of the film's wide release.
Is Time Warner a client? How else do you swing that?"
I used to work as a movie theater (as low-lever a concession dude) and we would get to see the movies early. It's not that big a deal. However, they probably had to get permission from the studio or something, which shouldn't be that hard.
#11, I second that.
LAT, WHERE THE HELL ARE TODAY'S NON-SEQUITURS?
Damn dude, your EIC stint is not over yet, quit slacking off!
Yours truly,
ATL reader.
The "drag show" was *performed by* Miss Martha Graham Cracker, and it was, to be precise, a cabaret.
Even more amusing, was that the show was performed to a Reed Smith-only audience, which included lots of audience participation. Someone needs to leak the photo of the partner up on stage...
my name is william, and i like to wear dresses
"This next news item is both good and and"
Lame duck EIC gettin sloppy.
""[T]he global, around-the-clock global business center gets top billing, and the fact that 21 secretaries in one office were fired is buried towards the end of the article."
So, is the business center local, national or global?
RS = 25 crappy firms under one roof
Bad news: We layed off a bunch of staff.
Good news: We took summers to a drag show.
Brilliant.
RS is a good-sized firm, clearly. And in Pittsburgh it's a pretty big deal. But, it's still basically a regional player and is perceived as such despite having farflung offices.
It's actually in kind of a "worst of both worlds" situation since its size requires large corporate clients and the corresponding billing rates, but its reputation as basically a Pittsburgh firm means that large corporate clients would rather go with better known NY firms for the same cost.
An associate at Reed Smith in Pittsburgh is in really good shape though. 145K goes a looooooong way in Squirrel Hill. Much farther than 160K in Manhattan.
Pittsburgh ... that's where UPenn State is nestled, right?
Absolutely true, 21.
(As long as they can keep hiring associates!)
22, that's a joke, right? UPenn and Penn State are two different schools, neither of which is in Pittsburgh.
22, that's a joke, right? UPenn and Penn State are two different schools, neither of which is in Pittsburgh.
Any law student who avoids Reed Smith at OCI because of either a client's billing complaint or secretaries' replacement is out of touch with the realities of running a global business.
Is repercussions at OCI really what RS is concerned about? It's more about being embarassed in front of existing and potential clients.
best things Reed Smith have going for it are (1) Bank of New York Mellon (2) the new Hong Kong office which is A list, and (3) the London/Greece shipping practice. Very solid firm. Hopefully wil continue the smart growth.
Any word how the new folks in Chicago and NYC feel about the firm? Happy with the move?
22/23: Relax, UPenn State is a running joke on ATL.
There are many other reasons to avoid Reed Smith at OCI, particularly the New York office. The partners and associates are dumb as fuck.
How is it that this "BIG FIRM" just screwed some NY summers with wait list offers or no offers without warning and too late for them to look elsewhere before school starts or during the job fair season- now they have to scramble with OCI, etc.
How is it that this "BIG FIRM" just screwed some NY summers with wait list offers or no offers without warning and too late for them to look elsewhere before school starts or during the job fair season- now they have to scramble with OCI, etc.
#2: because they have 354 offices worldwide, each with approximately 10-15 lawyers. They have the rare distinction of being a top-15 sized firm that is a player in exactly zero major legal markets.
If all the worlds solos suddenly banded together, they'd have a top 15-sized firm too (and nobody would know about them either).
31 - You think this happened at Reed Smith exclusively? If the individuals who did not receive offers hadn't been smart enough to keep their options open in light of the economy they didn't deserve an offer.
33 - you're a retard. at least say something funny when you're making stuff up. someone give this kid 24 fingers so he/she can perform the hardcore math their post requires.
I have been eagerly awaiting a post about the lay offs vs. the Business Center at Reed Smith. I am one of those employees who work at the Business Center. My job offer was the direct result of those layoffs and from what I know, and not just what I have heard through the grapvine, most of the support staff that were laid off were dead weight.
The Business Center is about 3 years old, and its success has led to a restructuring of the secretarial support staff and not the other way around. Most of those secretaries that were let go more often than not, farmed out their work to the Business Center.
We have 30 employees that are trained very well on so many programs that we actually do 4,000 jobs a month. We get anything and everything from all across the globe, but are located under one roof in Pittsburgh.
Sure Pittsburgh isn't NYC but we have an amazingly low cost of living with a lot of the same amenities. I'm not saying we have Central Park, the MET, Rockefeller center, or the Yankees, but we're content with the Steelers, Penguins, Schenley Park, Andy Warhol Museum, Carnegie Museums of Art and History, and the Benedum Center.
FYI - there are lots of other markets besides NYC. In fact, most of the world isn't NYC, if some of y'all didn't notice.
Also...RS was 23 on the AM Law 100...but I guess it's "regional" and poorly recognized by abovethelaw.com blog commentators, so that doesn't matter.
#36 = sad apologist for rusty old steel city...don't get me wrong, its not a terrible place to live but the examples listed nestle the city firmly in the middle of the geographic spectrum when it comes to desirable places to live. It’s great compared to Minot ND or Omaha Neb, but seriously, the Andy Warhol Museum?! Have you been there? Of course it is great on shrooms, but not nearly as palatable to the sober eye.