Law Firms

Big Firms Could Take Biggest Hit in 2008

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Is the old adage—what goes up, must come down—true in regard to law firm profits?

Law firms facing the most difficult 2008 could be those with the highest profits, a law firm consultant told the Recorder (sub. req.). The big earners, particularly those with niche practices, could be at risk because they “tend to have a little bit more volatility in their performance,” said Danilo DiPietro, client head of Citi Private Bank Law Firm Group.

Three law firms reported revenues of above $2 billion in 2007. They are DLA Piper; Latham & Watkins; and Skadden, Arps, Slate, Meagher & Flom. Latham & Watkins was among the big firms reporting a recent slowdown in work in a recent article in the Wall Street Journal.

Richard Gary, a principal of Gary Advisors who was formerly the chair of Thelen Reid & Priest, warned of tough times ahead. This is going to be a challenging year,” he told the publication. “The word right now is caution.”

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