ABA Journal

Practice Finance

49 ABA Journal Practice Finance articles.

Law firms experience downturn in profits in first half of 2022, new survey says

Law firms are experiencing new challenges in 2022 as their profits decreased and expenses increased, according to new data from Wells Fargo’s Legal Specialty Group.

Lawyer faces 5-month suspension for lying about capital contribution to law firm

The founder of an Illinois law firm is facing a five-month suspension for “engaging in conduct involving dishonesty, fraud, deceit or misrepresentation.”

Law firm profitability continues to decline as M&A work slows, Thomson Reuters report says

Waning demand for legal services and a rebound in expenses are contributing to a continued decline in law firm profitability in 2022, according to the Thomson Reuters Law Firm Financial Index.

Some BigLaw firms will cover travel costs for abortions

Several larger law firms plan to cover the cost of travel for employees' abortions following the U.S. Supreme Court's June 24 decision overturning Roe v. Wade.

Law firm profitability ‘dropped markedly’ in first quarter amid 12% hike in associate compensation

Law firm profitability decreased in the first quarter of the year, as direct expenses increased 13.1% and overhead increased 9.9% from the same period last year, according to the Thomson Reuters Law Firm Financial Index.

BigLaw ‘Super Rich’ club expands; one firm had $8.4M in profits per equity partner

Nine more BigLaw firms have joined the American Lawyer’s “Super Rich” list, released this week, along with the publication’s list of the 100 top-grossing law firms in 2021.

Lawyer disbarred for submitting more than $14K in false expense reports to firm he co-founded

Maryland’s highest court has disbarred a lawyer who allegedly squandered the second chance that he was given when his law firm first discovered that he had falsified an expense report. The Maryland Court of Appeals disbarred lawyer Keith M. Bonner.

Risky Business

Do you want to fight for your clients but are short on cash? Call litigation finance groups today and get $500,000 or significantly more! But not if you have public discipline, bad credit, too much debt or a dog case. Or if the other side is known for slash-and-burn legal tactics. Or if it looks like your case won’t bring in enough damages to satisfy the client after the funder gets paid.

How law firms can gain a competitive advantage with financial intelligence

Ari Kaplan recently spoke with Rob Stote of BigHand, Michael Grupp of Bryter and Tom Obermaier of SurePoint Technologies about the recent report that the three companies commissioned to identify key trends among law firm financial leaders.

Litigation funder’s contracts leave some lawyers owing double the amount borrowed

Lawyers who received litigation funding from Pravati Capital are sometimes tripped up by contract provisions that leave them owing more than double the amount that they borrowed.

Lawyers and staffers at just 3 BigLaw firms gave more money to Trump than Biden

Lawyers and staff members at top law firms overwhelmingly favored President Joe Biden and Democratic Party organizations in campaign contributions than former President Donald Trump, according to a law professor’s analysis.

How law firms should approach collections for financial success

By many accounts, law firms got through the financial challenges of 2020 by making deep cuts to expenses. And while that strategy seems to have worked, firms have likely reduced spending as much as they can and will have to focus on other aspects of the revenue cycle to propel their recovery.

Why lawyers in practice have to be mindful of time—especially their billing time

This is as good a time as any to discuss time. As Benjamin Franklin said, “Remember that time is money”—but I won’t waste any time discussing his kites. What does time mean to lawyers? Billable hours.

How do firms benefit from hiring a CFO?

It’s a well-worn cliché that lawyers are lousy businesspeople. As a result, many of the larger firms have already turned to financial specialists to help. More than 70% of Am Law 200 firms and over 85% of Am Law 100 firms employ a chief financial officer. The larger the firm’s revenue, the more likely it is to hire a CFO. But what about small firms or solo practices?

50 startup tips to get your practice off the ground

For many, being your own boss is the ultimate dream. But the idea of hanging up your own shingle can be scary and confusing, while others might not know where to start. The ABA Journal asked lawyers, legal professionals, marketers, consultants and other experts what to keep in mind when starting your own practice.

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