Although Howrey LLP officially dissolved as a partnership as of March 15, some operations continued beyond that date. But at the close of business today, the firm is going into a more complete shutdown, due to a withdrawal of bank financing.
“Last night, we received notice via email that Howrey is closing as of today, because CitiBank refuses to pay the payroll,” one source reported. “CitiBank has also refused to pay our PTO [paid time off], and our pension contributions.”
“Citibank has closed the door on Howrey operations today, more than a month before the May 9th date listed on WARN notices,” a second tipster confirmed. “No PTO, pensions will be paid out.”
UPDATE (6 PM): Citi takes issue with Howrey’s take on events. From a Citi spokesperson: “We are deeply disappointed in Howrey’s mischaracterization of the situation. Citi is not responsible for the employment practices of a client and has acted in a professional manner throughout this process.”
It’s time for a brief postscript on one of this month’s juicier (and well-trafficked) stories: the dismissal of three women associates from litigation powerhouse Boies Schiller. We have a few additional tidbits that we can share with you.
But this is probably the last story we’ll be doing on this drama, since we don’t expect anything else to emerge. One piece of information we’ve received is that the associates were offered severance pay — “very generous” severance, in the words of one source — but had to release any claims against the firm in exchange. All three took the deal, including the expectant mother. So don’t expect any “Aaron Charney for pregnant women”-type lawsuits.
What other details can we reveal about the situation?
This morning brought more lawyer layoff news. As reported by Peter Lattman over at DealBook, David Boies’s celebrated litigation firm, Boies Schiller, last week laid off three associates.
(The DealBook piece refers to the dismissals as “layoffs,” and we’ve used that terminology in the title of this post and the first paragraph. But whether these terminations should be considered true “layoffs” is open to question — please keep reading.)
As noted in Am Law Daily, the three associates “worked on the firm’s representation of British private equity firm Terra Firma in its unsuccessful civil suit against Citigroup.” Now that the three-week trial is over, presumably the firm felt it could let the women go — and perhaps make them the “fall guys” (or gals) for the adverse result.
Two of three associates used to work in the firm’s former office in Short Hills, New Jersey. After that office was spun off last year into what is now Stone & Magnanini, the two jumped across the Hudson to join the New York office of Boies. So perhaps they didn’t have powerful patrons at BSF – NYC to protect them from the ax.
Back in September, we wrote about David J. Stern, “Florida’s Foreclosure King,” who earned our Lawyer of the Day title for his ascendancy from the fourth tier to the lap of luxury. At the time, we sang Stern’s praises. Stern, a graduate of South Texas Law, employs 900 people, made $17.8 million in 2008, owns $60 million in real estate, and collects yachts.
Thanks to the New York Times, we knew back then that Stern may have been a shady character. But we kind of brushed off those pesky little questions about his “ethics” and “questionable practice methods.” I mean, come on, how many lawyers can say that they drive a Bugatti?
Well, maybe we shouldn’t have overlooked these issues so quickly…
In a couple of years, we might look back on today as the first point where the giant, unsustainable bubble that is the student loan market began to burst. Check out this press release:
The Student Loan Corporation (NYSE:STU – News), a subsidiary of Citibank, N.A., and a leading originator and servicer of student loans, announced that The Student Loan Corporation (“SLC”) and Discover Financial Services (“Discover”) have entered into a definitive agreement for Discover to acquire SLC, and thereby become the owner of its private student loan business as well as $4 billon of its private student loans. Separately and immediately prior to the transaction, (i) SLM Corporation (“Sallie Mae”) will acquire from SLC $28 billion of securitized federal student loans and related assets and (ii) Citi will acquire from SLC certain federal and private student loans and other assets totaling $8.7 billion. Upon the closing of the transactions described above, shareholders of SLC will receive $30 per share.
So Citi is getting out of the student loan origination business (although they’ll still have some existing loans on their books). I guess they don’t want to be the Lehman Brothers of this failing market…
When last we checked in on Debrahlee Lorenzana (pictured), she was switching lawyers to bring on a fellow media hog, Gloria Allred (recently the subject of a lengthy NYT profile). Over the weekend, Lorenzana filed her first papers under Allred’s stewardship.
Apparently we need to make a call to Geneva or something, and have them check out Citibank. FoxNY reports:
A tearful Debrahlee “Debbie” Lorenzana read a prepared statement Monday morning explaining why she is a victim of sex discrimination.
Lorenzana and her attorney, Gloria Allred, are asking for a human rights investigation. She claims she was fired from her job as a business banker job at Citibank after complaining that male colleagues called good looks distracting.
In other breaking news regarding workplace human rights violations, when I walked in today, I’m almost positive that a Breaking Media colleague thought “Whoa, that’s a big dude.” Nothing was said, but I saw it in her eyes. Can somebody text me the number for The Hague?
Maybe her former lawyer is safer ground? A couple of days ago we mentioned that Lorenzana hired Gloria Allred. But yesterday news surfaced about the lawyer Lorenzana fired, Jack Tuckner. Dealbreaker claims that Debrahlee might have just fired the perfect man for her case:
Specifically, Lorenzana says that she was told not to wear pencil skirts or stilettos. And while Tuckner may be the creepiest lawyer of all time, it turns out he has deep knowledge of this sort of footwear (and the other accoutrement that might fill out the ensemble), and how its presence in the corporate world can only enhance business, such as when a stilleto is shoved up one’s ass.
Yeah, it turns out that Tuckner is no stranger to sexual harassment claims…
It seems the world can’t get enough of Debrahlee Lorenzana, the former Citibank employee who alleges she was fired because she was “too hot.” She’s been making the rounds of the morning talk shows, and people have been absolutely gushing about her figure, which allegedly got her fired.
But could you call her body an attractive nuisance to the men and women who supposedly persecuted her for her beauty? Perhaps, since it now appears that Debrahlee’s boobs were not endowed, but acquired. Dealbreaker reports:
In this clip of her aforementioned knockers surgery, … she says she pumped them up to meet “a professional, well-educated man.”
Dealbreaker has a full clip of Debrahlee’s appearance on Plastic Surgery New York Style. Click here to watch it.
You could say that the video defines the word “busted”….
You know something is capturing cultural attention when your mother asks, “Did you write about that woman who got fired for being attractive?”
Earlier this week, the Village Voice ran a cover story on a woman who is suing Citibank for wrongful termination. She claims that her bosses found her too hot — and thus distracting to the other people trying to do their jobs.
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.