Law And More

"The Hero's Farewell" - From Jack Welch to David Lat

Power is heady.

The misfit Puritans made business one of the most powerful institutions in the new land. Actually it became the nation's shadow religion.

The economy they put together from scratch become the world's top dog. 

So, from the get-go, the leaders in business - often called "chief executive officers" - found it difficult to let go of that power when the job ended.

They still do.

Aging media tycoon Rupert Murdoch and investment genius Warren Buffett are not putting out there any signs of leaving.

Also, former head of legal media site Abovethelaw - David Lat - still has at least one foot in that sandbox. Maybe more.

Lat is now an employee at legal executive search firm Lateral Link.  The title is "managing director" but that's not being the number-one any more. 

The transition from number-one to an employee, by its very nature, represents a tricky crossroads.  Here is my analysis of some of that. 

"The Hero's Farewell, by management expert Jeffrey Sonnenfeld, captures that struggle. If former leaders don't navigate the shift just right, the implications are grim.

Their overall career could blow up.

More to the point, the business could flounder.

One has to wonder if Jack Welch had inflicted that darkness on himself and GE. He seemed to be unable to let go. GE has been in severe distress. The legacy of both is in play.

Constituencies with interests invested in those businesses in which the number-one departs might create a five-year rule.

That is, even though the former leaders might own stock (and a lot of it) they are banned from all official input for 60 months.

That includes no seat on the board.

Speaking to the media about the company is forbidden.

And, no organizing a stockholder movement to regain power.

As the platitude screams: We live in interesting times. How former business leaders manage their farewell is at the top of the list of fascinations. 

Full Disclosure: Recently I had a negative experience with Lateral Link.

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

Bayer & Roundup - Will It Settle?

To many constituencies, ranging from management experts to investors, the leadership at Bayer seems like a Ship of Fools. Meanwhile the stock has been on a sustained downward trajectory. 

Here are more details from The Wall Street Journal.

Less than a year ago Bayer purchased Monsanto, maker of Roundup. Not soon after, in a U.S. courtroom, Roundup was associated with a death from cancer. The verdict, which was reduced, had been $289 million.

More recently there had been a jury verdict of more than $2 billion. There remains 13,400 total plaintiffs. In terms of the stock, Bayer currently is worth less than the $63 billion it had paid for Monsanto. 

The question, as the WSJ, points out is: Will Bayer settle?

Essentially, Bayer is waiting to see how the appeals go - yes, it is appealing all verdicts - in order to get a clear picture of the legalities.

Also, a win could significantly affect its perception of where it stands legally.

There is also the reality that around the world, regulatory agencies find the active ingredient in Roundup - glyphosate - safe. That includes the EPA in the U.S. 

In addition, investors want to have put on the board those who understand U.S. litigation and crop science. 

Also, the elephant in the room is that Roundup is still being sold. There are commercials for it on U.S. network television.

For now, leaders of the company will probably keep their jobs. That's primarily because the financial and branding situation is so severe that it would be more risky to have a management shakeup than just cruise along.

The Bayer perfect storm, to use the cliche, is one which would make a fascinating case study for U.S. public relations crisis experts. 

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

The Media Innovator's Dilemma - From Ted Turner to David Lat

They build something that disrupts the media industry. 

The innovation works.

The experience is totally heady, with great influence. After all, it's said that media - not government, business or even technology - is the most powerful force in civilization. 

Then they sell that media outlet or simply move on to try out another role. What could play out next could be labeled The Media Innovator's Dilemma. 

For creator of 24/7 cable television news - Ted Turner - there was no next after he sold CNN.  He became just another businessperson whose former outsized presence went poof. Publicly, he indicated he regretted the sale. From then on, Turner seemed in mourning. And for a while, CNN's ratings plummeted. 

In the niche - legal media - the innovator had been creator of Abovehthelaw (ATL) David Lat. That began in 2006.

Officially he has left that role and become what is really a salesperson's job at headhunting firm Lateral Link. Its playing field is the legal sector.

Of course, that also constitutes a shift from being the boss to being an employee.

So far, Lat seems not to be able to totally let go of the legacy. He posts on ATL. It's in connection with his current headhunting  role, leveraging the aura of the innovation in hopes of developing new business. But, still, a clean break might have signaled amazing confidence in what is next.

As an employee, Lat won't be in charge. Instead he had to get the hang of fitting in to someone else's organizational culture. That's challenging.

In more rigid times in business, corporate employers hesitated hiring former entrepreneurs. They were wary that the transition might be impossible. That was the time of the Organizational Man (and Woman).

Since then, of course, careers paths have become less linear. More founders are parachuting into organizational functions. 

At best Lat could become a thought leader in the world of career strategies in the legal industry.

That's different than being a presence in media.

In his current role, his success depends on body count: How many placements he can make. Yeah, it's business, not mission of changing how news and commentary are positioned and packaged. The organization measures success in terms of that business metric. Either you make the sale or you don't make the sale. The game is binary. 

Lat could succeed at being a headhunter. He could adjust to employee status. He could also make more money than he had in media. But gone with his choice to give up ATL is the unique influence he had.

Media is the loudest voice in just about every context. That "loudest voice" is how journalist Gabriel Sherman summed up Fox News founder Roger Ailes. Here that book can be ordered from Amazon. According to some reports, after being ousted from Fox, Ailes was conferring with deep pockets such as Peter Thiel, who funded "Hogan v. Gawker," to fund launching a competitor to Fox. No, Ailes didn't plan to get a job in someone else's media outlet. 

Also, there is the issue if ATL, like CNN, will shift into a downward trajectory after the founder leaves. Part of the innovator's genius is a good head for the business of media. Are those business smarts embedded in ATL? The ATL DNA was Lat's genetic engineering. 

My hunch is that Lat could have moderate success in the headhunting space. But it's the media innovator's dilemma not to be able to make peace with the decline in influence.

Meanwhile, it would be shrewd reputation management for Lat to let go of ATL, in rebranding himself as a leader in executive search. Turner seemed incapable of that kind of reimagining his professional identity.

As for ATL, the niche of legal media seems ripe for another innovation. It could or could not come from the folks at ATL. A severe downturn can create demand for a fresh kind of analysis and presentation of issues. 

Full Disclosure: Since the late 1980s, I have been an entrepreneur. There I found extreme success versus organizational life. Recently I had a negative experience with Lateral Link. 

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

Former WWE Perfomer Ashley Massaro, 39, Reported to Have Committed Suicide

Can a failed lawsuit "kill?"

Maybe.

All too often litigation becomes an obsession. When the legal system dismisses it those who had filed it could tumble into emotional despair and/or rage.

For former WWE performer Ashley Massaro the response might have been hopelessness.

In November 2016, she had participated in a class action lawsuit against WWE.

It contended WWE did not warn its performers about possible head injuries which could result in concussions. In addition, Massaro claimed she had been sexually assaulted when engaging in a WWE event.

The lawsuit had been dismissed.

Allegedly as a result of her injuries she suffered clinical depression and addiction to pain killers.

Now, it is reported that her death had been a suicide, at age 39, had been a suicide. Here is coverage by the media.

WWE has long been controversial. This death might prompt politicos to authorize a comprehensive investigation of the health and well-being of the performers.

There are those, however, who claim that the performers should be aware of the risks they take when entertaining. As with football, this sport may just continue on, as is. It's big business.

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

Tony Robbins - Will BuzzFeed Investigation Do to Him What The New Yorker Ones Did to Harvey Weinstein, Les Moonves?

Law firm for celebrities Lavely & Singer denies it all. Among its clients is Bill Cosby. 

The "it" is the allegation of inappropriate behavior by mega guru Tony Robbins. That ranges from alleged verbal abuse of audience members to sexual misconduct with employees.

But BuzzFeed stands by its findings of an investigation which included leaked recordings, internal documents, and interviews. The focus of all that has been the alleged secret conduct of self-help coach Robbins.

Unlike mental health professionals, coaches in that niche do not require licensing. And Robbins' empire is closely guarded from media. His coaching presentations aren't allowed to be recorded.  Here is that BuzzFeed expose. 

Immediately one wonders if the BuzzFeed investigation will derail the career of Robbins, just like The New Yorker ones by Ronan Farrow did the professional life of Harry Weinstein and Les Moonves. Here is one of Farrow's articles on Weinstein, dated October 2017.

In addition, will these accusations prompt the push to license all those who declare themselves "coaches?" In some sophisticated circles, life coaches have replaced psychotherapists. 

The accusations are, well, colorful. Allegedly Robbins had his followers, as a tutorial, simulate sexual release. He berated those who claimed they were victims of rape. It was contended he would have his employees take notes in his apartment while he was naked, as in exiting the shower. Five women have made those kinds of sexual harassment claims. 

If these allegations can be proven or if Robbins caves and admits them, that would be no surprise. Power can unhinge judgment. Those with it might assume they can "get away" with unethical and illegal actions. They figure the victims will be too frightened to snitch. 

This story certainly has legs. The immediate issue is: Will it deliver a blow right now to Robbins' business interests? The #MeToo movement still has momentum. 

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

Law Firms & The Next Recession: Growing Media Niche

Some members of the legal media, such as David Packel at Law.com, have carved a new niche. It's focusing on the coming recession (yes, it will come, only the time and severity are uncertain) and how it could affect law firms.

In his latest installment on that, Packel notes that there has been some effort among law firms to become more, well, business-like. For example, some have hired operation directors to ensure more efficiency. 

However, those of us familiar with the business models of large law firms know they could be in great distress if the economic downturn is severe. 

On the one hand, there are The Great Untouched. They're the elite ones you never get fired using them. They handle the bet the ranch lawsuits and high stake transactions. 

But all the rest could wind up conducting massive reductions in force as well as stealth layoffs. The body count could be more than 10,000. During the good times they kept raising salaries and bonuses. Already demand is flat and expenses are rising. So, some could be struggling now, although that hasn't become public yet. But it could as soon as a disgruntled associate or paralegal leaks to the media how many lawyers are without assignments.

Given the possible carnage, of course, this is a good story to develop. However, the recession could be mild and law firms will continue being the inefficient entities they are.

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

Memories of Dewey LeBoeuf - Rapid-Growth CKR Law Reported to Have Cash Crunch

Rapid growth has been carrying a stink.

Many of us recall how BigLaw firm Dewey LeBoeuf's frantic growth strategy eventually resulted in bankruptcy. Here is The New Yorker's analysis.

Uber, which keeps growing without generating a profit, finally has hit a wall with investors. The Wall Street Journal examines its "creative accounting." Yeah, we recall Enron also. Meanwhile, the disappointment of its IPO shows that the investment community is not longer buying in to the promise of high growth without indications of profits.

Now, as Jack Newsham reports in Law.com, CKR Law's "growth strategy is being questioned." Launched in 2014 by Jeffrey Rinde, it has 200 lawyers in about 50 locations. Its presence is global.

But, Newsham notes:

" ... [CKR Law] has experienced a 'cash flow crunch' this year and has struggled to pay its partners, according to sources and internal firm emails."

For example, for two months partner draws haven't happened.

Partners, assessed as "underperforming," are being terminated.

"Redundancies" are being eliminated.

It had been sued for not paying the $200,000 March rent and fees for its offices at 1330 Avenue of the Americas. But that lawsuit was ended on April 29th. The plaintiff is open to settlement through paying the month's rent and late fees. 

Former partner Yael Tobi sued in California state court. Among her contentions is that the firm owes her more than $250,000.

In Manhattan Supreme Court attorneys Julie Steamer and Bruce Hart filed a complaint alleging CKR's attempt to push them into a fraudulent equity partnership.

Why CKR Law's financial and legal troubles are on the radar is because perception tends to be pattern-based.

This is not being taken in as an insolated situation.

Instead, there probably is a lot of connecting the dots to determine if other law firms are also experiencing financial challenges and are being subjected to lawsuits. 

After all, the threat of a worldwide economic downturn hovers over planet earth. Some law firms might not make it through that. In addition, more than 10,000 lawyer jobs could go poof. As in the 2008 global financial collapse, those lawyers knocked out of the box may never get back in to practice law. 

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

Following Example of President Macron, Should US Pilot Shutting Down Harvard Law School?

In France, populist protesting has taken the form of the yellow-vests. 

As a disruptive solution to reducing inequality, reports The Wall Street Journal:

"  ... President Emmanuel Macron wants to shut his alma mater, the Ecole Nationale d'Administration, or ENA, an institution that has become a symbol of France's close-knit elite and persistent class divide."

Way back in 1945, when the school had been founded, this wasn't the way it was. Its mission actually was to level the playing field for all in France who wanted to gain access to respected career paths.

Then, ENA hardened into a feeder pool for the privileged to land top jobs. With that went the continuation of their elite positioning and packaging in French society.

That radical strategy could send the right message throughout France: Government leadership is serious about restoring equality of opportunity.

Why not pilot that model here in the U.S. where there is the growing divide between those with wealth and the 55% who live paycheck to paycheck. 

That could start with Harvard.

Harvard was launched by the Puritans in 1636. The need was pragmatic. They had to train ministers and teachers for their life in the new world.

But then the branding game overwhelmed everything else.

The experiment can kick off slowly: Declare a moratorium on parts of Harvard University, such as Harvard Law School for X number of years. Then analyze the impacts on creating a land of equal opportunity. Go on from there.

Full Disclosure: From an immigrant background I strove to be admitted to Harvard. I was. It took years to sort out that shouldn't have been a goal.

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

Nat Hardwick - Variation of Usual Saga of Hand in Cookie Jar

Lawyers' putting their hand in the cookie jar (stuffed with clients' and law firm funds) is a all too familiar story in the legal sector.

The money is there.

The controls aren't.

And the lawyers feel pressured to maintain a lavish lifestyle. Or, like the fictional Will Gardner in "The Good Wife" they have debts from their addiction. Gardner's was gambling.

But some instances of that are more outrageous than others. What could go down in the history of the legal sector as downright camp - or totally excessive - is the $40 million caper by Georgia real estate lawyer Nat Hardwick. Currently he is serving a 15 year sentence. In October 2018, a jury found him guilty of conspiring to commit wire fraud, many counts of wire fraud, and making a false statement to a financial institution which is federally insured.

He embezzled both from clients and his own firm Morris Hardwick Schneider. The latter has since gone bankrupt.

Now, reports Joshua Sharpe in The Atlanta Journal-Constitution, U.S. District Court judge Eleanor Ross demanded he pony up $40 million in restitution. Of that $23.3 million will go to Fidelity Bank and $17 million to individuals.

Hardwick did not disappoint in his camp persona. Through is lawyer Kristen Navoy he pushed back. Pronto. He contended that the evidence wasn't adequate to justify such a large amount of restitution. For example, among the victims were those who claimed that Hardwick's antics damaged their reputations. That is difficult to quantify in dollar terms, Hardwick asserts.

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.

 

Post "Pilliod v. Monsanto" Roundup Verdict - Investors Frantic, Plaintiffs Unlikely to Settle

The $2 billion jury award for punitive damages in the "Pilliod v. Monsanto" Roundup litigation was as much a neck-snapper as the$140 million one in "Hogan v. Gawker."

The latter resulted in Gawker's going bankrupt.

Things don't look a whole lot brighter for Bayer, the parent of Monsanto.

This Pilliod verdict was the third big one to go against Bayer. The Wall Street Journal reports that Bayer will appeal all three.

Meanwhile, the implications of this most recent award are grim for Bayer.

In Europe, on the Dax index the stock plunged 2.3%. That follows its previous downward trajectory as investors become increasingly skeptical that the leaders at Bayer knows what they are doing. The only recent bright sign on the horizon in the management of company is the sale of Coppertone. 

Also, the whopper of a verdict, The Wall Street Journal notes, likely will deter the remaining 13,400 plaintiffs from settling.

It is usually in the defendant's monetary and branding self-interest for the plaintiff to settle on a confidential basis. But right now that doesn't seem like it will happen in the Roundup litigation. 

Lawyer Charles Harder emerged a star from "Hogan v. Gawker." Likewise Brent Wisner of law firm Baum Helund could be on his way to celebrity status. 

Exactly the right tone and content for all your communications. Complimentary consultation janegenova374@gmail.com.