Fish & Richardson Could Cut Its Corporate Department. All of It.
Sources report that Fish & Richardson will cut its entire corporate department as of January 1, 2010.
To be fair, Fish & Richardson is more known for its IP work. Its corporate department is relatively small. But cutting an entire practice group seems like an extreme cost cutting measure. The firm has already cut associate salaries and laid off associates.
There are a few things we don’t know. Although our sources tell us the corporate department will be cut firm-wide, our sources are clustered in only one Fish office. We don’t know if corporate associates will be offered other jobs in the firm as of 1/1/10, and we don’t know if the move is being precipitated by a large group of Fish corporate partners leaving.
That’s because the Fish associates we spoke with were informed of the news in a curious way. Details after the jump.
You’d expect an internal memo or a press release from Fish & Richardson to announce this decision. But our sources report they learned of the news over the telephone:
The firm’s president, Peter Devlin, disseminated the information via individual voicemails to every employee, rather than his usual emails. Guess someone is afraid of employees forwarding emails to ATL???
If the firm decided to communicate over the phone in order to avoid Above the Law, it shouldn’t be surprising that the firm did not respond to our multiple requests for comment.
The desire to avoid media detection could be one reason there are so many unanswered questions about what precisely is going at the firm. But you can’t discontinue an entire practice group quietly.
We’ll keep you posted as more information comes to light.
Earlier: Nationwide Salary Cut Watch: Fish & Richardson Scales Back Salaries
Fish & Richardson Puts One-Third Of Its Incoming Associates On Ice
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Firsitlicious
Apparently you're not working. How hard can it be to get your voicemail into a WAV and upload to youtube/send it to ATL? Get cracking.
Its all about overhiring. . . . . Why does an IP shop try to play in an area they can't handle?
Per Texas Lawyer, Baker Botts laid off associates in Global Products and Litigation. No partners.
I went to Harvard.
Fish Richardson= The Next Heller/Thelen
I like fish tacos.
The fish be sinking
Partners = Revenues
Associates = Costs
To maximize profits or even to reduce losses, a firm must strive to reduce costs while growing or maintaining revenues. This is the reason that associates get canned while partners are allowed to waddle with clients even in the worst of times. If such simple logic evades you, please get out of the profession pronto. That way it will be less painful for you and everyone else.
Dear Fish,
Please see JD memo from last month.
That is all.
-Non-JD associate, but on board with trimming the fat from the profession.
I heard Milbank is planning to cut its corporate department as well....
The ship be sinking...
3,
IP overlaps with portions of corporate law (e.g., in the anti-trust area). Since FR is known for IP, it makes sense to have a corporate group to handle clients that have IP-related corporate issues.
The corporate group is a tiny piece of business at fish. it is a smart move in this economic climate to cut off parts you dont need or make money. I doubt this would affect the way FR runs its IP business though.
Here's the voice mail.
http://www.youtube.com/watch?v=CK0cUv3ba-o
Milbank has a corporate department?
I am God's partner in matters of life and death. But this isn't about me. I have great health insurance.
I'm Barack Obama?
send all fishy information to flag@whitehouse.gov
How you like me now?
Remember kiddos,
Fish is the "place to be" if you're interested in IP - until they rescind your offer on graduation day.
For the next few years, Fish should be your last option if you're interested in IP.
You mean some self-entitled associates are in danger of losing their jobs?
Wonderful!
What does this mean for incoming associates who were deferred for a year and took to $5k/month stipend?
Note to all the TTT trolls who spout off this "entitlement" bs:
Remember, shit rolls downhill. Don't sound so happy about all of these layoffs/deferrals. If times are tough for us, they will be even tougher for you. When you wake up one morning and realize that you are now competing with T20s for your state legislature internships, then you'll know how rough you have it.
They could eliminate their entire corporate practice and still not match the number of first years alone that Latham fired. Might not even match the number of summers no offered by Paul Hastings or V&E.
talk about sleeping with the fishes.
I love how Fish tries to be sneaky to avoid the publicity. Such cowards. Star Trek IP types have no balls.
That firm is going down hard.
Just watch....entire practice groups today means whole office closings tomorrow (if the corp cut doesn't stem the bleeding)
Fish & Richardson
Latham & Watkins
Paul Hastings
Vinson & Elkins
Baker Botts
Proskauer
Cadwalader
White & Case
Good luck with whatever callbacks you landed, you poor, pitiful 2011ers. But you might as well drop out of law school and save that last $100k before accepting offers at any of these firms.
"If times are tough for us, they will be even tougher for you. "
Self-entitled much?
to be fair, some of us in Fish around 2005-2008 were wondering while the entire offices (e.g., Houston) were added in the first place.
22, seems like the troll is the person who believes in their superiority to someone else and then threatens to come and take their job.
@9 Lawyers at a firm are more like balance sheet items than income statement items. Partners and associates are both assets, but the offsetting entry for an associate is a liability whereas the offsetting entry for a partner is equity. (By "partner" I mean a true equity partner; an income partner is just an associate by another name.)
Cutting associates is like deleveraging. The whole country is deleveraging its balance sheet, and law firms are no different. If and when the good times return, firms will be scrambling to lever back up by hiring tons of new associates.
9,
You're missing the additional element of the New York Firm Model.
It's not so simple as "Partners = Revenue" and "Associates = Costs."
The New York firm model is more aptly described as "Associates = leverage" or possibly more accurately "leveraging."
It is true the partners have the books of business and are the ones who bring in revenue in the general sense. However, without associates to rack up the billable hours, there is very little revenue from that book of business.
The core of the Biglaw model is to pick up as many associates as your clients will support then have them bill as many hours as they can.
In a sense it's exactly like a financial firm using its current assets as collateral to make more investments.
When times are good, such leveraging can drastically improve the firms profits.
When times go south, the firm is stuck with heavy interest bills and potentially disastrous margin calls. Except in the Biglaw context it's stuck with dozens of high salaried associates who all of a sudden arent' billing enough to support themselves.
31, Curses, you beat me by a minute
Thanks, Obama.
Fish had a corporate department? I call flame.
Welcome to the dead fish death spiral. Notice that the date is next year. Like a law firm start date. Maybe a move to placate the bank into keeping the ole Line 'O Credit open. Hemorrhaging cash to make payroll.
Will it work? Nah. Couple more partners leave, the bank calls, and the last "paycheck" bounces. Bye Bye.
Word on the street is that Ballard Spahr's real estate group is dying, especially out west. Then again, nobody cares about satellite offices...
Looks like somebody wised up and is starting to run that firm like a business. This is the kind of move that will make them stronger in the long run.
If F&R is an IP firm and their corporate practice is largely dead weight, then it makes sense for the firm to drop the lagging practice and focus on what they do well. What remains will be stronger.
This would never hapen at Widener
My economic policies will save or create 4 million jobs. Unfortunately that will still leave 146 million of you unemployed.
I'm Barack Obama?
32, if only all partners did have books of business. Sadly, many don't. However, they still have power; associates don't; so it's the associates that get thrown under the bus first.
34- Thanking the wrong President. The recession started back in 2007.
Still, never let facts get in your way.
But tell me, how is a mixture of the fillibuster proof majority and unemployment working out for you?
Thanks, Obama.
42 - I've got a question for you. How long are you and the current adminstration going to blame Bush for the state of the US economy? Obama has been in office for 8-months. Democrats have controlled Congress for 2-1/2 years. In that time things have gotten exponentially worse, no?
Here are some facts for you to chew on. The recession was triggered by the housing crisis. The community
reinvestment act was passed under Carter. The act required federal financial institutions to encourage banks
to give homes loans to people with little or no credit.
Under Clinton, the act was expanded and Clinton set
targets for low income home ownership at Fannie and
Freddie. Barnie Frank and Chris Dodd, the heads of the
Financial Services Committee in the House and the
banking committee in the senate, respectively,
consistently resisted Bush's attempt to regulate Fannie
and Freddie since as far back as 2003.
As a senator, Obama also opposed stricter regulations
on Fannie and Freddie, and as preseident, he has driven
the economy further in the hole. He force fed the
stimulus through Congress by promising 4 million new
jobs. Where are they? Obama got elected by pulling the
wool over the eyes of sheep like yourself and blaming all
that was wrong in the world on the Bush administration.
That's not going to work the next time around.
So rest assured, It is you who continues to blame the wrong president. But hey, don't let the facts get in your way. You fucking dolt.
-34
Thanks for doing everything humanly possible to extend and worsen the recession, Obama.
Thanks for being a douche, 42.
44 - just because Rush says it is so, does not mean it has to be true. If you think a global financial crisis is caused solely by some US folks with low credit scores buying houses, you have some serious studying to do. Since you seem to be a person of limited intellectual capacity, I would recommend that you start with this stick figure illustration of how the crisis came about (warning, although really funny, it contains the f*** word and other NSFW language).
http://docs.google.com/present/view?skipauth=true&pli=1&id=ddp4zq7n_0cdjsr4fn
Let's get away from politics and get back to what in the hell is going on at F&R?
What is going to happen to incoming associates in the corp. group? What about deferred associates?
This is an IP shop, brother. Even the quickest review of their webt site indicates about 15 corporate attorneys in a firm of over 400. Elie, you should write for NYT with those sourcing skills.
Fish is DONE. FINISHED.
Why do you say that?
46 - everything I stated was a fact. If you don't believe the housing crisis is the main driver behind the economic meltdown you are truly a moron.
http://useconomy.about.com/od/grossdomesticproduct/a/cause_recession.htm
I've never listened to Rush, but I have listened to Obama. He promised hope and change. He told the American people that Congress needed to act quickly to pass through a stimulus bill loaded with earmarks and pork, which no one had read, in order to create 4M jobs and to keep unemployment from climbing over 8%. Now he is pushing a national health care bill that wil, according to Obama, extend coverage to 20M uninsured without increasing taxes on Americans earning less than $250K. A plan which is purportedly designed to curb out of control insurance costs, yet doesn't contain any tort reform measures.
I'm not sure where you're getting your facts from but, as evidenced above, just because Obama says it's so, does not make it true. Here endeth the lesson, donkey.
-42
Why do yall make it so hard to make an account! I gave up! anyway:
Fish And Richardson P.c.'s anagram name is SHARP, CHRONIC, SAD FIND
46--You truly do not understand the root cause of this debacle and therefore cannot be a business lawyer.
Credit Default Swaps tied to mortgage related assets. Plain and simple. Brought the entire house down. Pun intended.
If anyone thinks a president or his policies can be responsible for the buisness cycle they are stupid, or just another brain-dead, screeching partisan. Bush didn't cause a recession. Obama is not going to end one. They, and Congress, can possibly affect the distributional impact of the oscillations, and can make fiscal decisions that affect long term growth, but the cycle will continue to roll no matter what party is in office. Good talk.
Heard from a Fish S.A. that they were informed the Austin office is closing... Ruh Rhooo.
Austin is closing??????????????????? Some confirm or deny this PLEASE!
The rumor has been spreading since I got in from lunch. (BTW, I am not 55).
The Austin office of F&R is closing Dec 31, 2009
53 gets it. 51/42 still does not.
- 46
Peter Devlin came to Austin today to tell us the office is closing at the end of the year.
@53 - "A plan which is purportedly designed to curb out of control insurance costs, yet doesn't contain any tort reform measures."
1) What isurance costs are we talking about -- health insurance or med mal insurance?
2) Don't you think tort reform should be left to the state legislatures? You are not a big believer in federalism, are you?
Sorry, should be @51.
- 61
While it is correct that several corporate attorneys have been asked to leave the firm, F&R plans to keep corporate attorneys in the Northeast.
Austin is closing. Any word on what's going to happen to the lawyers there?
Yesterday, the corporate group. Today, Austin. Tomorrow, the Flavia machines. You heard it here first.
54 -- i agree but a president and congress and fed acting in concert can steer the long-term economy 2 years out. i am a GOPer but believe the stimulus was only a bad idea b/c it didn't spend the money fast enough or on the right things, but you can't fault the economics.
also, this is ATL at it's best. straight up BIGLAW news.
Fish is definitely closing its Austin office no later than Dec. 31, 2009. No idea where everyone is going. We are all scrambling to find something.
Fish is definitely closing its Austin office no later than Dec. 31, 2009. No idea where everyone is going. We are all scrambling to find something.
Did Austin give any SA offers this summer or have any incoming class of 2009s?
61- I'm talking about the insurance costs resulting from physicians practicing defensive medicine out of fear of med mal suits. I'm strong on federalism, I believe tort reform should be left to the states. I also don't believe health care is an inherent right. The point being, Obama is trying to force feed national health care based on the premise that it will quell out of control insurance costs yet does not even attempt to address the driver behind those costs (i.e., defensive medicine) is disingenuous.
Obama has been a complete disgrace. His approval ratings have dropped below 50%. The only people still buying his snake oil are liberal d-bag, know-nothings such as yourself.
53- 46 here. I am a corporate attorney. The difference between you and me is that I understand credit default swaps AND how they relate to the mortgage crisis you fucking tard. 59, see above and may God have mercy on your soul.
FR-Austin gave no SA offers. Obviously, there is no incoming 2009 class now...
70: tell me health care isnt an inherent right when you are 70 and have a pre-existing condition and tens of thousands worth of medical bills. everyone should be able to get health care at a reasonable cost. you are the douche.
Obama's rating has NOT dropped below 50% according to the gallup poll. what source are you looking at? fox news?
It's closet bigots like you who continue to blame the victim in order feel secure in your own ignorance.
Are any lawyers being offered positions in other offices?
Fish is actually running itself like a business now-- cutting deadweight associates and partners. The Austin office brought in ZERO business, so it had to go. Fish has zero debt, and just won a contingency case with a nine digit damages award. I think they are fine.
74 - a very small select few, perhaps.
@69 - There were no offers made to this past summer class, but there were 3 incoming class of 2009 associates...
73 you liberal d-bag. You're obviously no expert in constitutional law. Health care is not an inherent right. Only complete morons such as yourself would try to argue otherwise. If this had anything to do with lowering the cost of health care, the first item addressed would be tort reform. As Howard Dean admitted, the reason the bill does not contain tort reform is because the draftees of the bill do not to upset their loyal donors, the trial lawyers. How's that for hope and change?
If you want health care, get off your ass and get a job. stop waiting for hand outs you pos.
The fish be floating
Anyone have more details about the Austin office closing? Why isn't ATL reporting on this? Are the associates getting the option to relocate, or is it "here's your check, there's the door"?
RIP Teddy Kennedy.
32, 41 There were partner/of counsel layoffs in June that were kept quiet. About a dozen.
RIP My job
@83 are you an attorney at Fish?
nope
@53, no cares if your pun was intended.
http://www.thebestpageintheuniverse.net/c.cgi?u=puns
It only takes two brain cells. One says to another - "Fish is cutting dead weight so it can be acquired by a GP firm that already has corporate."
I worked at Fish back in 2002-2003 and it was common to distribute news like this over VM. I doubt it has anything to do with Above the Law. They just consider it more personal because at least you get to hear a human's voice.