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Good morning. Donald Trump made history – again – when he appeared in federal court for his arraignment, and the former president is still in the process of putting together the legal team that will defend him against the historic charges. In the meantime, he could face another defamation lawsuit from writer E. Jean Carroll after she got the OK to move ahead from a New York judge. Plus, 3M appeals the dismissal of the Aearo bankruptcy, and Orrick is the latest to announce layoffs. Somehow, it’s only Wednesday.
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The defense team for former President Donald Trump is still in flux, following his plea of not guilty to charges he mishandled sensitive government documents and lied to officials who tried to recover them, report Andrew Goudsward and Sarah N. Lynch.
Attorneys Todd Blanche and Chris Kise appeared with the former president during his arraignment, and both indicated at the hearing that they would remain on the case permanently.
But Trump is still putting the rest of his defense team together. Jim Trusty and John Rowley, who had been helping Trump’s defense during the investigation, resigned after his indictment. Lindsey Halligan, a Florida attorney who has primarily handled insurance matters, has also been involved in the case as an attorney for Trump.
Trump has sought to add a Florida-based criminal defense lawyer to his team in the days since his federal indictment, according to sources familiar with the conversations. No one has been publicly named so far, and two attorneys who spoke with Reuters said they turned down requests to represent the former president in the documents case.
Read more about the arraignment and Trump’s efforts to bolster his legal team.
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- Orrick Herrington & Sutcliffe is laying off about 40 associates and 50 staff members, which accounts for a 6% reduction of its global workforce. Citing a “convergence of market forces,” the law firm has also deferred the start date for incoming associates to Jan. 16. (Reuters)
- Crowell & Moring will move its downtown Washington, D.C., headquarter offices to a new, smaller space after 35 years of working in the same building. (Reuters)
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REUTERS/Jose Luis Gonzalez
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“An employer cannot avoid liability for negligent supervision and retention by shutting its eyes to the tortious practices and propensities of its employees — that is, by being doubly negligent.“
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- An 8th Circuit panel will take up Trump ally Mike Lindell’s legal claim to block a federal investigation tied to election integrity. Lindell’s attorneys contend the investigation and September 2022 seizure of his cell phone “were made in bad faith to retaliate against Lindell for exercising his First Amendment rights.” The DOJ told the appeals court that enjoining the investigation was “unwarranted” and that the premature return of his phone “is likewise unjustified.”
- Sullivan & Cromwell’s Jeffrey Wall will defend Major League Baseball’s long-standing exemption from U.S. antitrust liability in the 2nd Circuit. A lower court judge threw out a case by several minor league clubs that lost their affiliation with big league teams, including the Houston Astros, after MLB restructured its professional development league. Weil’s Gregory Silbert will argue that MLB violated competition law in its reshuffling. Silbert and other lawyers for the minor league teams have called the MLB exemption a “get-out-of-antitrust-jail-free card.”
- The Senate Judiciary Committee’s subcommittee on federal courts is holding a hearing on U.S. Supreme Court ethics. Associate Professor Jennifer Mascott from George Mason law school is expected to testify, as is Professor James Sample from Hofstra University law school. Donald Sherman, chief counsel and executive vice president for Citizens for Responsibility & Ethics in Washington, is also expected to speak.
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Court calendars are subject to last-minute docket changes.
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- The Patent Trial and Appeal Board ruled for Intel on the chipmaking giant’s bid to invalidate a patent that represented $1.5 billion of a $2.18 billion verdict it lost to VLSI Technology in 2021. The board invalidated the computer chip-related patent after canceling another VLSI patent that accounted for the remainder of the Texas federal court verdict last month. (Reuters)
- U.S. District Judge Lewis Kaplan in Manhattan said E. Jean Carroll, who won a $5 million jury verdict against Donald Trump, can pursue a separate $10 million defamation lawsuit against him. Kaplan rejected Trump’s argument that the defamation case must be dismissed because jurors had concluded he never raped her. (Reuters)
- A Bahamas court temporarily barred the foreign ministry from consenting to U.S. criminal charges brought against Sam Bankman-Fried, the indicted founder of now-bankrupt cryptocurrency exchange FTX, after his extradition in December. Prosecutors in Manhattan said last month they would drop five charges of foreign bribery, bank fraud and conspiracy against the onetime billionaire if the Caribbean nation did not agree to them. (Reuters)
- The New York Court of Appeals said music producer Dr. Luke is a “public figure” and so he must prove that pop star Kesha acted with actual malice to win his 2014 lawsuit claiming that the singer-songwriter defamed him by falsely accusing him of raping her nearly 20 years ago. (Reuters)
- The 3rd Circuit partly revived a shareholder lawsuit against Prudential Financial alleging the insurer concealed a shortfall with its individual life insurance policy reserves in 2019. The court said investors had a plausible claim that the insurer falsely downplayed mortality among policyholders as “normal” less than two months before Prudential had to increase its reserves by $208 million to account for an unexpected number of deaths affecting one group of policies. (Reuters)
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- Baker McKenzie hired a team of capital markets and finance lawyers from Paul Hastings who advise on Latin America-focused deals. The group includes partner Michael Fitzgerald, who was chair of the Latin America practice group at Paul Hastings, as well as partners Arturo Carrillo and Joy Gallup. (Reuters)
- Freshfields hired two antitrust partners from two rival firms: Heather Lamberg from Winston & Strawn will be based in Washington, D.C., and Justina Sessions from Wilson Sonsini will be based in Silicon Valley. (Reuters)
- Leslie Shanklin joined Proskauer as a partner and co-head of its privacy and cybersecurity group. Shanklin was previously in-house at Warner Bros. Discovery. (Reuters)
- Foley Hoag expanded its energy and climate group with the hire of Tory Lauterbach as a partner in the firm’s Washington, D.C., office (Foley Hoag)
- Regulatory and compliance lawyer Yann Padova joined Wilson Sonsini’s European privacy and cybersecurity practice as a partner in its Brussels office. Padova previously led Baker McKenzie’s data protection practice in France. (Wilson Sonsini)
- Jean-Claude Rivalland, founding partner of Allen & Overy’s Paris office, will join Norton Rose Fulbright as a partner and will handle corporate, M&A and securities matters. (Norton Rose)
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Companies are increasingly forced to wrestle with crises stemming from political upheaval, unexpected business developments, legal enforcement actions, cybersecurity attacks, and a variety of other causes, which can be difficult to predict. Jennifer Kennedy Park, Rahul Mukhi and Abbey Doyno of Cleary Gottlieb Steen & Hamilton identify five steps a company can take to prepare for managing unexpected events.
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Correction: Tuesday’s Daily Docket gave the incorrect name of a new law firm created by a combination of two firms. The firm is keeping the name Smith, Currie & Hancock and will also use the names Smith Currie Oles and Smith Currie.
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