Cadwalader has taken hit after hit after hit in recent times, with sweeping lateral moves affecting one of the firm’s core practices. While in the past, the firm brushed off merger rumors with denials, it now seems to be confirming that there’s a lot of interest from other top firms. The prospect of a merger for the embattled firm now seems like it may be gaining momentum.
According to the American Lawyer, a combination may be on the horizon for Cadwalader, but the firm’s reported merger partner is shrouded in mystery. Here are some additional details:
[S]ources have indicated in the last week that Cadwalader has been speaking with multiple firms lately and the pace of talks has picked up. One source familiar with the circumstances described the set of courters as a rolling group of three.
Sources say possible merger partner firms are likely ranked in the Am Law 25 to Am Law 50 range — where firms’ gross revenues exceed $1 billion — and are generally interested in Cadwalader’s corporate practices and its large New York office. Cadwalader, ranked No. 85 in the Am Law 100, generated $638 million in gross revenue last year.
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Cadwalader issued a statement, noting that it had indeed been “approached” by other firms, with a spokesperson saying, “We have been approached by many top-tier firms for years, and that continues.”
What will happen next for Cadwalader? Industry insiders say that the firm should expect additional partner exits, while the firm’s spokesperson says “[t]he firm is in a very strong financial position and remains confident in our standalone strategy.” So, will the firm stand alone and face a slow death by departure like Stroock? Or will it embrace the prospect of a merger and lean on strength of a potential Biglaw suitor to stay the course? We’ll be watching to see whether Cadwalader can turn its woes into a way forward.
Cadwalader Merger Talks Pick Up Pace [American Lawyer]
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Staci Zaretsky is the managing editor of Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.