Stroock & Stroock & Lavan

A Very Expensive Typo?

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Rushmore condominium Upper West Side condo.jpgWe realize that we make our fair share of typographical errors here at ATL. But this is just a blog, not a document being sent to a client or filed with a court, and we’re more focused on substance than style, due to the speed of the news cycle and our desire to be… FIRST! So please cut us some slack.

(But do continue to point out typos to us, either in the comments or by email. Readers are our unofficial copy editors, and we frequently fix typos after they’ve been brought to our attention.)

In any event, at least our typos don’t cost anyone millions. From the New York Times:

The Rushmore, a new 41-story glass and stone condominium tower on Riverside Boulevard at the Hudson River, seemed serene on a recent visit. The flowers in the interior courtyard were in full bloom; the ground-level pool had been filled. Sixteen buyers had already moved in.

And yet an error of a single digit in an arcane document — the densely worded 732-page offering plan — could upset that happy picture, and cost the sponsors, the Extell Development Company and the Carlyle Group, tens of millions of dollars in lost revenue, lawyers say.

Of course, this isn’t the first example of an expensive typo (assuming it’s a typo; this is open to debate). Remember the $900,000 comma, or the $40,000 missing “L”?

But, if given effect, the glitch in the Rushmore offering plan will certainly be one of the more expensive ones. Find out the nature of the mistake — and the law firm responsible — after the jump.

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Stroock Offers $75,000 in Stay Away Money

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Stroock logo.JPGThese incoming associate deferrals are getting out of control. Stroock is the latest firm to come up with an innovative plan to deal with its new class of first years.

Above the Law has been able to confirm that Stroock is offering incoming first years a payment of $75,000 to leave the firm by July 1st. Half of it will be paid in September 2009, the other half in January 2010.

This would make Stroock the most well-known firm to rescind (kind of) offers to 3Ls. But unlike other firms, Stroock is making it a voluntary decision, and they are offering a significant financial windfall. And give Stroock some credit for dropping the pretense that there will be more than enough work for both the class of 2009 and the class of 2010, next year.

Pillsbury offered a voluntary departure program to its associates. But Pillsbury didn’t let people know what was waiting for them if they didn’t take the offer. Stroock, perhaps learning from that mistake, isn’t asking incoming first years to make their decision in a vacuum.

The other options for Stroock first years after the jump.

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Nationwide Layoff Watch: Stroock Undergoes Layoffs for 10% of Associates and Staff

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Stroock logo.JPGMore bad news on the last day penultimate day of March. We’re now able to report that the firm so nice they named it twice, Stroock & Stroock & Lavan, is laying off ten percent of its associates and staff. Here’s the statement from a Stroock spokesperson:

For some time, we have watched, with concern, as firms and businesses around the country have responded to difficult economic conditions through layoffs of hardworking, dedicated employees. Over the past several months, we have sought to avoid taking similar steps. However, the economic downturn has not abated and we have determined that these conditions require us to take similar action. So, today, we have reduced the number of associates and staff by approximately 10% firm wide. We remain well staffed to serve our clients and to grow when conditions improve.

These actions sadden us greatly, but under current economic conditions are unavoidable.

We also understand that that the firm will be asking certain associates to take a pay cut. More details after the jump.

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Biglaw to Associates: ‘Surprise! Your salary is frozen’?

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pay freeze salary freeze pay cut law firm.jpgWe’ve been reporting on the Biglaw salary freeze heavily over the past month. Earlier this week, we did a round-up of firms that had announced their intention to keep 2009 salaries at 2008 levels.

At that point, we knew of sixteen firms that had sent memos to their associates notifying them that raises were not forthcoming. While certainly unpleasant, everyone acknowledges that it’s more welcome than layoff news.

Today, we’re getting e-mails from several associates who are freaking out that the freeze is on at their firms, based on their first paychecks of 2009. Their paychecks came in last night at 12:01 a.m. and they are the same amount as paychecks last month. Here are the unconfirmed freeze reports we’ve received so far…

Mayer Brown:

Mayer brown checks just popped at last years levels. So apparently there is a freeze, maybe, but no memos on it yet. Please investigate.

Today was the first pay day in 2009 for Mayer Brown NY. In the past, our first pay check of the year automatically reflected salary increases. No such increase today. Smells like a pay freeze?!? With the added courtesy of letting ADP announce it instead of management.

(UPDATE (6:05 p.m.): Mayer Brown spokesman Bob Harris says the firm “has not yet announced its plans for lawyer compensation in 2009″ and that it usually makes the decision in February.)

…Steptoe & Johnson:

Steptoe & Johnson froze salaries. What stands out about this is that they did not send a memo or anything telling associates salaries would be frozen, or saying when/if the position would be reconsidered. Today was our first payday, and they just issued everyone the same checks they were getting last year. No comment. No memo. No explanation. Typical douche-baggery.

… Stroock:

They haven’t made any announcements of a salary freeze. They just haven’t announced any salary increases and continue paying the old salary. When I looked at the employee system to check the amount of tomorrow’s paycheck, it shows that I will be paid the same salary as last year.

Not everyone is freaking out. A reassuring voice, after the jump. Also, Ballard Spahr and RatnerPrestia have officially put the freeze on, with a memo and a press release, after the jump.

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Nationwide No Offer Watch: Stroock Strikes

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Stroock Stroock Lavan LLP Above the Law blog.JPGThe tips keep rolling in about firms no offering summer associates. Today’s confirmed casualty report comes from Stroock & Stroock & Lavan.
Unlike Wiley Rein, Winston & Strawn, and other reports we’ve heard that suggest firms are coalescing around a 90% offer rate, Stroock made offers to only 80% of their ’08 summer class.
Stroock did not directly confirm this number, but they did not deny it either.
Instead, Stroock communications director Jim Ponichtera focused on a different percentage:

In 2007, Stroock made a strategic decision to increase the size of its
incoming class. Our summer classes were typically in the 28-30 range, and in 2008 we had 54 summer associates. Part of this was due to our decision to increase the class size, and part of this was due to an unexpectedly high acceptance rate of offers to join our summer program.
At the end of the summer, we extended a record number of entry-level offers – over 50% more than in 2007, which is consistent with our current business plan.

You hear that? 50% more offers.
More on the 20% who didn’t make the cut after the jump,

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Fall Recruiting Open Thread: Vault 81-90 (2009)

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comparing.jpgOur Vault 100 series is winding down. We hope that the insiders have enjoyed the opportunity to brag (or to vent) about their firms. And that the curious have appreciated insights into life at various firms in the top 100.
Here is the next bunch up for discussion (with their prestige scores in parentheses):

81. Crowell & Moring LLP (4.763)
82. Katten Muchin Rosenman LLP (4.754)
83. Stroock & Stroock & Lavan LLP (4.735)
84. Arent Fox PLLC (4.726)
85. McGuireWoods LLP (4.697)
86. Venable LLP (4.676)
87. Dorsey & Whitney LLP (4.575)
88. Dickstein Shapiro LLP (4.554)
89. Baker & Hostetler (4.531)
90. Finnegan, Henderson, Farabow, Garrett & Dunner, L.L.P (4.503)

Are the following statements true or false?

  • Venable attorneys like bocce ball.
  • Katten attorneys need Weight Watchers.
  • Having your tupperware washed denotes a “notable perk.”
  • Getting to leave early and have the firm respect your personal time is the best perk of all.

    • Okay, you know the drill.
    Earlier: Vault 100 Open Threads – 2009

    Non-Sequiturs: 07.05.07

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    * American Lawyer Media: Going, going, gone. Sold, for $630 million, to Incisive Media of the U.K. [Fishbowl NY; WSJ Law Blog]
    * When animals crazy bearded men attack. [Breitbart TV (video) via Drudge Report]
    * A Biglaw partner is not like a store clerk at the local convenience store. Or is he? [National Law Journal (subscription)]
    * More about the late Tom Heftler, former managing partner of Stroock & Stroock & Lavan. [New York Observer]

    Nationwide Pay Raise Watch: Stroock, Reed Smith, Sonnenschein

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    Stroock Stroock Lavan LLP Above the Law blog.JPGA few more news items concerning associate compensation:

    1. Stroock & Stroock & Lavan: Multiple sources confirm that they’ve raised salaries in their Los Angeles office. Effective date of June 1; no changes to the bonus structure. The new scale is 160-170-185-195, plus discretionary raises for year 5 and above, who previously were at $200K plus discretionary raises (small, usually $5K a year).

    In addition, we’ve learned that the firm pays associates 10 percent of any business they bring in. Do other large law firms have similar policies? Feel free to discuss in the comments.

    2. Sonnenschein Nath & Rosenthal LLP: We haven’t confirmed this (and their NALP form doesn’t reflect it). But according to a memo posted in the comments, the firm is “increasing starting salaries in our Chicago, Los Angeles, San Francisco, Silicon Valley and Washington, DC offices to $160,000. We will be adjusting salaries for all other associate classes in these offices effective July 1, 2007 to take into account the increase in the starting salary.”

    3. Reed Smith LLP: Also not confirmed. But according to a memo posted in the comments, the firm “ha[s] decided to increase our starting salary for first year associates in California, Chicago, and Washington, D.C. to $160,000 effective January 1, 2008. In addition, we will accelerate to January 1, 2008 the implementation of the previously announced increase to $145,000 in Philadelphia/Wilmington.”

    The firm has also made changes to its bonus program: “In addition to the current bonus thresholds, we will make further payments of $5,000 at each of 2000 and 2100 chargeable hours and $10,000 at 2300 chargeable hours. This means, for example, that associates with 2300 chargeable hours for 2007 will earn additional bonuses of $20,000.”

    If you can confirm the Sonnenschein or Reed Smith news, or if you have additional info to share, please drop us a line. Thanks.

    One Stroock and He’s Out?

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    Stroock Stroock Lavan LLP Above the Law blog.JPGThat’s what some of you were wondering with respect to Maury B. Saiger, the associate at Stroock & Stroock & Lavan in New York, who sent out a now infamous email yesterday. After we posted his email, his bio disappeared from the Stroock website. Had he been fired?
    No. Maury Saiger’s bio is back online. Our sources at Stroock tell us that they are not aware of any adverse employment action being taken with respect to Mr. Saiger.
    But we do hear that the firm’s Executive Committee threw a s**t fit yesterday, after we posted Saiger’s email. There were some very unhappy campers at Stroock yesterday.
    More about the fallout from this episode appears after the jump.

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    What the Stroock Is Going On?

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    Stroock Stroock Lavan LLP Above the Law blog.JPGApparently something weird is going on over in the New York office of Stroock & Stroock & Lavan. Something really weird.
    A source at another firm advised us:

    Something has happened at Stroock. Rumors floating around that an associate flipped his s**t and emailed all personnel with something odd. I can’t find out more than that.

    Use your powers. Find the answer.

    After invoking said “powers,” we learned a bit more — and got our filthy paws on the email.
    Check it out, after the jump.

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    Skaddenfreude: Stroock & Stroock & Lavan

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    100 dollar bill Above the Law Above the Law law firm salary legal blog legal tabloid Above the Law.JPGWe have confirmed pay raises in the New York and Los Angeles offices of Stroock & Stroock & Lavan. Our understanding is that the information was communicated in meetings, so there’s no memo or other official documentation.
    We have verified the following pay scales with sources in Stroock’s NY and LA offices:
    STROOCK & STROOCK & LAVAN
    New York:
    Class of 2006 – $160,000
    Class of 2005 – $170,000
    Class of 2004 – $185,000
    Class of 2003 – $210,000
    Class of 2002 – $230,000
    Class of 2001 – $250,000
    Class of 2000 – $265,000
    Class of 1999 – $280,000
    Class of 1998 – $290,000
    Los Angeles:
    Class of 2006 – $150,000
    Class of 2005 – $160,000
    Class of 2004 – $175,000
    Class of 2003 – $185,000
    Class of 2002 – $200,000
    As for Stroock L.A. associates in more senior classes, we’re told that raises are “discretionary.” If you can clarify that opacity, please drop us a line.
    Earlier: Previous announcements of law firm associate salary increases (scroll down through “Skaddenfreude” archives)

    Musical Chairs: 01.11.06 (postscript)

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    Oops, we left out new partner news from the MC post that we just published. And since half of you probably just made partner at Jones Day, that’s not a good thing.
    Here’s the news:
    * Jones Day: Forty-five (45!!!) new partners. Names here.
    * Kaye Scholer: Four new partners. Names here.
    * Stroock & Stroock & Lavan: Three new partners. Names here.
    * Vinson & Elkins: Fourteen new partners. Names here.
    NY Associates Making Partner, Counsel [NYLawyer.com]
    Jones Day Names 45 New Partners [Jones Day]
    Kaye Scholer Announces New Partners and Counsel [Kaye Scholer]
    Stroock Names New Partners and Special Counsel [Stroock & Stroock & Lavan]
    Vinson & Elkins Names 14 New Partners [Vinson & Elkins]