McKee Nelson

Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.

Is Bingham about to fall victim to its own strategy?

Since 1994, the firm has leapt from a regional firm that worked almost exclusively with the Bank of Boston to one of the fifty largest firms in the world. The impetus behind this expansion was a series of about ten mergers over the course of sixteen years. The firm picked up productive but possibly struggling boutiques and mid-size firms, growing from a 200-attorney firm in 1994 to an 850+ attorney firm in 2009.

How did Bingham reach its current state? Let’s look at the history.

double red triangle arrows Continue reading “The Future Of Bingham McCutchen”

Edward De Sear

On Friday we brought you the story of Edward De Sear, a former partner at several top law firms who now faces a charge of child pornography distribution. De Sear — a graduate of Columbia and UVA Law, who is now one of the nation’s leading capital-markets lawyers — has been a partner at Allen & Overy, Bingham McCutchen, McKee Nelson, Orrick, and Milbank Tweed. As we mentioned in our prior post, the charges against De Sear came as a shock to fellow New York lawyers and to neighbors of his in Saddle River, New Jersey (my hometown — I can walk to De Sear’s place from my parents’ house).

After our story appeared, a former colleague of Ed De Sear came forward, to share some recollections. “I’m completely stunned,” said this attorney.

What could our source recall about De Sear?

double red triangle arrows Continue reading “More About the Former Biglaw Partner Accused of Child Porn Distribution”

Edward De Sear

I grew up in the town of Saddle River, New Jersey, a suburb about 40 minutes outside of New York City. With its wooded rolling landscape and small-town charm, Saddle River is a pleasant place to live. Large houses, a mix of stately older homes and well-executed McMansions, sit on sizable plots of land, thanks to two-acre zoning.

It was a peaceful and bucolic locale, and when I visit my parents, it seems much the same. My colleague Staci Zaretsky, our newest full-time contributor here at ATL, also grew up there — and concurs with my assessment.

But Saddle River, like the suburbs depicted in such films as American Beauty and Happiness, is not without its drama. Yesterday Edward De Sear, 64, a resident of Saddle River and a capital-markets partner at the distinguished international law firm of Allen & Overy, was arrested at his home and charged with distributing child pornography. The charge of distributing child pornography carries a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years and a $250,000 fine.

UPDATE (12:00 PM): Make that a former partner of Allen & Overy. De Sear has resigned from the firm, according to a statement issued by A&O. Read it in full after the jump.

Let’s learn more about the allegations against Ed De Sear, hear from someone who knows him, meet his high-powered defense counsel — and check out his beautiful and historic home….

double red triangle arrows Continue reading “Allen & Overy Partner Accused of Kiddie Porn Purveyance”

Legal recruiters find work for lawyers — and sometimes they create work for them. We previously covered, for example, the litigation between mega-recruiter Major Lindsey & Africa and one of its former employees, Sharon Mahn.

Sometimes recruiters go after each other, and sometimes they go after law firms — firms that don’t pay them the placement fees to which they’re entitled. Recruiter Alan Miles, principal of Alan Miles and Associates, went after Bingham McCutchen — and won, big time.

How much did Miles win? And on what grounds?

double red triangle arrows Continue reading “Lawsuit of the Day: Bingham Must Pay Seven-Figure Sum to Legal Recruiter”

Bingham logo.jpgBingham McCutchen has found a way to expand during the recession. Just weeks after losing 11 lawyers (5 partners and 6 associates) to Morgan Lewis, Bingham McCutchen has acquired McKee Nelson. The American Lawyer reports:

After enduring a rough few years caused by the collapse of the structured finance market, the elite specialty firm of McKee Nelson has agreed to be acquired by the larger Bingham McCutchen.
Partners at both firms were informed Monday morning of the merger, which is scheduled to take effect August 1. The combined firm will be called Bingham McCutchen, and will include all of McKee Nelson’s lawyers.

No word on whether the McKee attorneys have the CHARACTER to become Bingham attorneys. But the merger looks good on paper:

McKee Nelson, which is known as one of the pre-eminent firms for tax planning and tax litigation, was viewed by Bingham as an attractive addition. “It’s really rare to find a firm that is this size that has three market-leading practices,” says Bingham chairman Jay Zimmerman, referring to McKee’s expertise in tax, financial institution litigation, and capital markets-structured finance. Structured finance might be moribund now, but Zimmerman sees it as an area worth investing in. “It will be part of our longterm strategy for serving the financial institution industry.”

How does this work on the McKee side of the ledger? We check in after the jump.

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McKee Nelson Logo.jpgLayoffs are a fact of life in this terrible economy. But not all layoffs are created equal. They can be handled well, or they can be handled… poorly.

McKee Nelson, which last November laid off 32 (17 lawyers and 15 staff), recently announced a new round of cuts. This time the firm let go of 46 employees: six lawyers and 40 staffers.

While unfortunate, at least McKee Nelson handled the matter with class:

  • First the firm notified the affected individuals. Then it announced the news more broadly, at a firm-wide meeting — not on the Acela.
  • The firm is providing four months of severance. This is definitely on the high side (and much better than the one month, or really two weeks, that Roxana got).
  • The firm is also paying for four months of COBRA premiums — no small benefit, given the cost of health insurance these days.

    One can see why the firm was recognized by Vault in 2008 as the best law firm to work for.

    The final classy touch: McKee Nelson is not casting aspersions on its departing employees. To the contrary, the firm has nothing but warm words for the affected individuals.

    Read the statement that founding partner Will Nelson issued to ATL, after the jump.

    double red triangle arrows Continue reading “Nationwide Layoff Watch: McKee Nelson (Redux)
    (Or: The proper way to do layoffs.)”

  • McKee Nelson Logo.jpgToday’s firm-wide meeting at McKee Nelson did not yield good news. A statement from the firm reveals the extent of the bloodletting:

    This morning, McKee Nelson LLP laid off 17 of its corporate/finance associates, reducing this practice from 94 to 77 attorneys. The layoffs are concentrated in the MBS, ABS and CDO parts of our capital markets practice.

    Our firm also laid off 15 administrative staff. All of the affected attorneys and staff members are in good standing at the firm. None of these layoffs are performance based.

    At least the firm was honest about the reason for the layoffs. No stealth layoff / performance review rhetoric from the firm partners:

    For the past 16 months, the partners of this firm have been committed to bearing the costs of the overcapacity in our structured finance group in order to keep our team intact. The devastation that befell the credit markets in September, however, was unprecedented. We have analyzed and created a projection of what we believe the structured finance business will look like over the next two years and what resources, capabilities and experience will be required to do that work. This layoff is a necessary part of the firm’s adjustment to this new reality.

    More details after the jump.

    double red triangle arrows Continue reading “McKee Nelson Lays Off 32 (17 Attorneys, 15 Staff)”

    McKee Nelson Logo.jpgIs something going down at McKee Nelson today? A tipster reports that there is a surprise, all-attorney video conference scheduled for 1:30 today.

    Managing partner William Nelson announced the meeting succinctly via firm-wide email this morning:

    There will be an all attorney meeting at 1:30PM.

    Recently, these mystery meetings have been held to release good news. In September, Covington & Burling held a surprise meeting to announce the acquisition of Heller Ehrman’s IP department (admittedly, that was not good news for Heller Ehrman). Last month, Jenner & Block held one to reassure associates (shortly before a number of partners were let go).

    Okay… so these meetings aren’t always “good news,” but they have been “good spin.”

    What does the future hold for McKee Nelson? Well, one of their biggest clients is JPMorgan Chase, one of the only banks left standing. Things can’t be too bad, right?

    We’ll let you know where the chips fall.

    Update (2:15): McKee Nelson confirmed that they laid off 17 associates and 15 staffers today. Read additional coverage here.

    Earlier: Jenner & Block’s Mystery Meeting

    Musical Chairs: Covington & Burling Snaps Up Heller’s IP Department

    Layoff Update: Jenner & Block

    Vault logo law firm rankings career guides.jpgThis morning we brought you a special sneak preview of the 2009 Vault law firm rankings (to be released in full on Tuesday, August 12, over at the Vault website). We passed along two compilations: (1) firms ranked 26-50 by prestige, and (2) firms 11-20 on the “best to work for” list.
    Now, as promised, we bring you the balance of the rankings: firms 1-50 by prestige, and all 20 of the “best to work for” firms.
    Check out the lists, plus comment from Vault law editor Brian Dalton, after the jump.

    double red triangle arrows Continue reading “ATL Exclusive: A Sneak Peek at the 2009 Vault Rankings!
    (Part 2 of 2)”

    McKee Nelson LLP AboveTheLaw Above the Law blog.jpgAn interesting article in today’s New York Times — by Lynnley Browning, author of the earlier Biglaw perks piece — focuses on the subprime mortgage mess and current investigations into the adequacy of disclosures to investors.
    Investigators are focused on Wall Street, but lawyers involved in the securitization process may also face scrutiny. Government investigation is the last thing these struggling law firms need, as they try to retool in the face of a grim outlook for structured finance and real estate work.
    The article focuses on McKee Nelson:

    McKee Nelson burst onto the scene in 1999 and quickly grabbed lucrative Wall Street work from long-established rivals. William F. Nelson, one of its co-founders, said the firm, which is known for its sophisticated tax work, did not employ any special legal maneuvers to outflank its competitors. “There’s no secret, magic elixir that we sprinkled,” Mr. Nelson said.

    In any case, the mortgage turmoil is now hitting the highly regarded McKee Nelson hard. The firm recently pared its structured finance department to 80 lawyers from about 115 through buyouts, sabbaticals and transfers to other departments. More cuts are unlikely, a spokeswoman said.

    So that’s good news. And the firm is trying to take lemons and make the proverbial lemonade:

    [A]fter profiting from the mortgage boom, McKee Nelson is now positioning itself to profit from the bust by riding the coming wave of lawsuits. In January, the firm flew its partners and their spouses to Charleston, S.C., aboard four Delta commuter jets, to map out its strategy.

    “We’re heavily committed to doing more litigation,” Mr. Nelson said. The firm hopes to represent investment banks, hedge funds and other financial companies, as well as their executives, in a variety of litigation, he said.

    And maybe law firms, too, as lawsuits and investigations proliferate? See, e.g., Cadwalader, facing a $70 million lawsuit arising out of a securitization deal gone bad.
    Small Law Firm’s Big Role in Bundling Mortgages [New York Times]

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