{"id":7027208,"date":"2026-08-04T18:10:18","date_gmt":"2026-08-04T18:10:18","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/conflicts-ai-risk-firms-trump-deal-raises-client-conflicts-allegation-recent-thinking-on-the-lateral-attorney-market-and-related-risks\/"},"modified":"2026-08-04T18:10:18","modified_gmt":"2026-08-04T18:10:18","slug":"conflicts-ai-risk-firms-trump-deal-raises-client-conflicts-allegation-recent-thinking-on-the-lateral-attorney-market-and-related-risks","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7027208","title":{"rendered":"Conflicts, AI &#038; Risk \u2014 Firm&#8217;s Trump Deal Raises Client Conflicts Allegation, Recent Thinking on the Lateral Attorney Market and Related Risks,"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-11811\">\n<p>\t<!-- .entry-header --><\/p>\n<div class=\"entry-content\">\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-4590\" src=\"https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2022\/08\/2022_doctor.jpg\" alt=\"\" width=\"480\" height=\"273\" srcset=\"https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2022\/08\/2022_doctor.jpg 480w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2022\/08\/2022_doctor-300x171.jpg 300w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2022\/08\/2022_doctor-230x131.jpg 230w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2022\/08\/2022_doctor-350x199.jpg 350w\" sizes=\"(max-width: 480px) 100vw, 480px\"\/><\/p>\n<p>\u201c<a href=\"https:\/\/news.bloomberglaw.com\/business-and-practice\/skaddens-intel-work-conflicts-with-trump-deal-lawmakers-say\"><strong>Skadden\u2019s Intel Work Conflicts With Trump Deal, Lawmakers Say<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cTop Democratic lawmakers on Tuesday sought information from Skadden Arps Slate Meagher &amp; Flom on the law firm\u2019s agreement with President Donald Trump for free legal services.\u201d<\/li>\n<li>\u201cThe firm\u2019s work advising Intel Corp. on the US government\u2019s 10% stake in the company \u2018presents a host of conflicts given Skadden\u2019s agreement with the Trump administration,\u2019 Sens. Richard Blumenthal (D-Conn.) and Adam Schiff (D-Calif.), and Rep. Jamie Raskin (D-Md.) wrote in a letter.\u201d<\/li>\n<li>\u201cIntel shareholders in a Delaware Chancery Court complaint in March alleged such a conflict, the lawmakers said in their letter to firm Executive Partner Jeremy London. \u2018It is hard to understand how Skadden\u2019s provision of free legal services to the Trump administration and the allegations made in the complaint do not cause Skadden\u2019s attorneys to be in violation\u2019 of professional conduct rules, they said.\u201d<\/li>\n<li>\u201cThe letter emphasizes the investigatory threat Democrats pose to Skadden and eight other Big Law firms that collectively pledged $940 million in free legal services to the Trump administration last year in return for avoiding punitive executive orders. Democratic wins of either the House or Senate in the fall mid-term elections would supply committees they run with subpoena power to press investigations.\u201d<\/li>\n<li>\u201cSo far the firm \u2018has provided no responsive information or records in response to our requests,\u2019 the lawmakers wrote, noting they have twice previously asked Skadden for information. The law firm didn\u2019t immediately respond to a request for comment.\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/www.law.com\/americanlawyer\/2026\/07\/28\/when-hiring-rainmakers-demands-surgical-precision\/\"><strong>When Hiring Rainmakers Demands \u2018Surgical\u2019 Precision<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cNot every lateral partner, even with a book of business, can add value to a Big Law firm\u2019s practice. Some rainmaking laterals could be business accretive and add value, while others could afflict a firm\u2019s culture or other partners\u2019 business after a lateral move.\u201d<\/li>\n<li>\u201c\u2018We have to be surgical with our hires at this point to not cannibalize the business,\u2019 noted Frank Lopez, chair of Paul Hastings, which has a leading finance practice within Big Law, when speaking of a lateral hire earlier this month.\u201d<\/li>\n<li>\u201cHe\u2019s far from alone. Other firm leaders also spoke on considerations of adding lateral partners to already well-built-out and mature practices, such as the potential for conflict and business conflicts, impact on culture, and the impact on other partners\u2019 business.\u201d<\/li>\n<li>\u201cOne Am Law 50 leader, speaking on condition of anonymity to speak freely, said that at their firm, knowing the reaction of the existing partnership is key to the hiring process. \u2018No matter who you hire, you have to care about how your people are going to feel about them,\u2019 the firm leader said. \u2018You can\u2019t talk about how culture matters and then bring people without taking that into consideration. That fit can be more important than the business case for bringing them on.&#8217;\u201d<\/li>\n<li>\u201cA lateral hire could impact an existing practice in a number of ways, including conflicts, taking business credit away from a current partner, or just adjusting the culture within a firm. If a firm has a highly ranked practice, with brand names staffing it as well as a strong market reputation, firms don\u2019t want to cannibalize their own practice.\u201d<\/li>\n<li>\u201c\u2018Law firms don\u2019t want to risk hiring into a practice and then losing someone,\u2019 said Jon Truster, partner at recruiting firm Macrae. \u2018And that is where firms need to be more surgical.&#8217;\u201d<\/li>\n<li>\u201cLaw firms should ultimately be hiring people who can effectively leverage off the platform, noted Matthew Bersani, founding partner of Cliff Group recruiting firm. \u2018That goes to the whole question about strategic hires,\u2019 he said.\u201d<\/li>\n<li>\u201cStill, firms can also seek out laterals who have the same clients but different types of matters, such as trying to obtain litigation work from a client that has only given their transactional matters to a firm. Smart lateral hiring should be less about the book of business and more about the relationships laterals can bring and how those fit into the existing platform, he said.\u201d<\/li>\n<li>\u201cBusiness conflicts or actual client conflicts from a lateral can also damage a practice. Law firms always do conflict checks with laterals, but sometimes a potential conflict is missed, or the move is not as \u2018accretive\u2019 as the firm thought it would be, due to a conflict, Bersani said.\u201d<\/li>\n<li>\u201cFor instance, a restructuring partner who is averse to big banks in debtor representations could lose out on business to banking and finance partners, who have strong relationships with these bank clients. \u2018You\u2019re forcing partners to pass up on other business,\u2019 Bersani said.\u201d<\/li>\n<li>\u201cThese lateral hiring conflict and business clash issues are a frequent problem for law firms, Bersani said, but it\u2019s a matter of degree \u2014 some lateral partners may reduce or overlap with other partners\u2019 business, but not significantly.\u201d<\/li>\n<li>\u201c\u2018It\u2019s very hard to assess the magnitude of those issues from the outside,\u2019 Bersani added. It\u2019s important for the law firm bringing laterals in to do a deep dive on these potential issues before bringing them on board, he said.\u201d<\/li>\n<li>\u201cLateral move conflicts and clashes with other partners\u2019 business \u2018probably happen more than firms would like them to,\u2019 Bersani said. \u2018In the current rapid-fire hiring market, sometimes these issues have been overlooked or under-appreciated in terms of the impact they can make.&#8217;\u201d<\/li>\n<li>\u201cAnd these issues are popping up more, as firms hire more laterals and more quickly. \u2018One of the risks of bringing in laterals fast is you might be under-appreciating the potential conflicts issues,\u2019 Bersani said.\u201d<\/li>\n<li>\u201cRainmaker hiring is the one that firms put on the full court press, as one of these hires can have an outsized effect on the future of the firm. \u2018Rainmakers are always on the table.&#8217;\u201d<\/li>\n<\/ul><\/div>\n<p><!-- .entry-content --><\/p>\n<p>\t<!-- .entry-footer --><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>\u201cSkadden\u2019s Intel Work Conflicts With Trump Deal, Lawmakers Say\u201d \u2014 \u201cTop Democratic lawmakers on Tuesday sought information from Skadden Arps Slate Meagher &amp; Flom on the law firm\u2019s agreement with President Donald Trump for free legal services.\u201d \u201cThe firm\u2019s work advising Intel Corp. on the US government\u2019s 10% stake in the company \u2018presents a host [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7027209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[190952,17368,12982,19972,10465,10918,61848,11209,16585,17157,11115,13828,5594,1175],"dealstore":[],"offerexpiration":[],"class_list":["post-7027208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-allegation","tag-attorney","tag-client","tag-conflicts","tag-deal","tag-firms","tag-lateral","tag-market","tag-raises","tag-related","tag-risk","tag-risks","tag-thinking","tag-trump"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Conflicts, AI &amp; 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