Law class admitted before affirmative action ban is most diverse, bankruptcy judge beats recusal demand, and more ??
Photo illustration: Meriam Telhig/REUTERS

Law class admitted before affirmative action ban is most diverse, bankruptcy judge beats recusal demand, and more ??

?? Good morning from The Legal File! Here are today's top legal stories:

?? Final law class admitted before affirmative action ban is most diverse on record

REUTERS/Jonathan Drake
REUTERS/Jonathan Drake

U.S. law school enrollment has stabilized after a volatile two years, while racial diversity among new law students hit a historic high in the final admissions cycle before a national ban on affirmative action took effect.

New American Bar Association figures show that the total number of law students beginning their Juris Doctor programs this fall declined a mere half a percentage point nationwide compared with 2022. The number of first-year students spiked nearly 12% in 2021 amid the height of the COVID-19 pandemic, only to plummet in 2022.

Law student diversity continued to climb, meanwhile, even while racial diversity in the overall U.S. legal industry lags far behind that of the general population. Among the new class, 40% are students of color, according to a Law School Admission Council analysis of the ABA data. That’s an increase from 39% in 2022, it found, marking the third straight year that law schools have collectively enrolled the most diverse class on record.

This year’s first-year JD class is the last to be admitted when most law schools could legally consider applicants' race. The U.S. Supreme Court in June banned affirmative action at colleges and universities, though a handful of states such as California already had such a ban in place at public institutions.

Read more about the historical high.


?? Bankruptcy judge beats recusal demand over ties to scandal-hit predecessor

A Plaque on the U.S. Bankruptcy Court building. REUTERS/Brendan McDermid
A Plaque on the U.S. Bankruptcy Court building. REUTERS/Brendan McDermid

Texas Bankruptcy Judge Marvin Isgur does not need to recuse himself from a case that was reassigned to him after a fellow judge, who was a close friend, resigned amid misconduct allegations, another judge ruled Dec. 15.

Chief Bankruptcy Judge Eduardo Rodriguez ruled that there was no evidence that Isgur was biased in his handling of 4E Brands' bankruptcy case, or that David Jones, the prior judge on the case, had any influence over Isgur or any interest in the outcome of the case.

Jones, one of the busiest U.S. bankruptcy judges, resigned in October after admitting to a long-term romantic relationship with a local bankruptcy lawyer whose law firm represented sanitizer manufacturer 4E Brands and many other companies in the Houston court. The 5th U.S. Circuit Court of Appeals issued a misconduct complaint finding that there was probable cause to believe Jones violated the codes that govern judges.

The recusal demand was made by an estate that is pursuing a wrongful death claim for Joshua Maestas, who died after ingesting 4E Brands hand sanitizer. The estate argued that Isgur's personal history with Jones made him unsuitable to take over the case.

Read more.


?? US seeks 8-month prison term for lawyer who traded on M&A secrets

Signage is seen outside of the legal offices of the Gibson Dunn & Crutcher law firm in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly
Signage is seen outside of the legal offices of the Gibson Dunn & Crutcher law firm in Washington, D.C., U.S., May 10, 2021. REUTERS/Andrew Kelly

Federal prosecutors in Washington, D.C., are seeking an eight-month prison sentence for Romero Cabral da Costa Neto, a Brazilian lawyer who pleaded guilty in November to trading on inside information while he was serving as a visiting attorney at U.S. law firm Gibson, Dunn & Crutcher.

He has asked for sentence of time served and supervised release, which would be suspended once he leaves the United States.

Prosecutors said Costa traded on information about drugmaker Swedish Orphan Biovitrum’s $1.7 billion acquisition of CTI BioPharma in May. At the time, Costa, a Brazilian national, was working as a visiting attorney in Gibson Dunn's Washington, D.C., office under a one-year contract with the firm. Gibson Dunn advised CTI BioPharma on the deal.

Costa is scheduled to be sentenced on Wednesday by U.S. District Judge Carl Nichols. Costa's lawyers at Boies Schiller Flexner did not immediately respond to a request for comment. A spokesperson for the U.S. attorney's office in Washington declined to comment.

Read more about the insider trading lawyer.


?? Law firm Paul Weiss taps Clifford Chance partners in latest London hires

Signage is seen outside of the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly
Signage is seen outside of the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly

Private equity lawyer Christopher Sullivan and finance lawyer Taner Hassan have joined U.S. law firm Paul, Weiss, Rifkind, Wharton & Garrison's growing London office as partners, the firm said on Dec. 18.

The partner pair arrives from Clifford Chance, where Sullivan, who advises on cross-border mergers and acquisitions, led the UK private equity practice. Hassan, who advises private equity clients on buyout and infrastructure financing deals, will be head of European leveraged finance at Paul Weiss.

New York-founded Paul Weiss, which has about 1,000 lawyers, has sought growth in London this fall, hiring lawyers with private equity industry clients.

The firm hired a team in September that included several top Kirkland & Ellis partners in London and a Linklaters partner. Other former Kirkland lawyers have also joined Paul Weiss since then.

The hires came shortly after Paul Weiss lost Alvaro Membrillera, its London office leader, and several other London lawyers to Kirkland.

Read more about the moves.


?? That's all for today, thank you for reading?The Legal File, and have a great day!

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