Law firm, Stroock & Stroock & Lavan has reportedly reduced the pay and work hours of its senior staff members amid ongoing merger discussions. The firm has been under scrutiny due to personnel and financial issues. The distress began after the firm terminated its merger talks with Nixon Peabody, resulting in a significant number of lawyers leaving the firm.
Scuttlebutt around Stroock & Stroock & Lavan’s floundering state further increased after the firm found a potential partner in Pillsbury Winthrop.
According to the American Lawyer, the firm’s financial situation may have led to pay cuts of up to 60% for some staff, leaving certain teams working with minimal personnel. By July, it remained unclear whether the firm had reinstated any hours and pay for those affected.
Law.com noted that in August, two senior staff members and one junior staff member left the firm. Whether these departures were related to the pay and hour cuts for senior staff remains to be determined.
Already at the beginning of 2023, layoffs had been conducted by Stroock & Stroock & Lavan, amongst both staff and attorneys. However, this was merely the beginning of the firm’s personnel losses. Presumably, the firm’s financial struggles, coupled with personnel and salary cuts, led to predictions by former employees that the firm was headed towards a bleak future sans a suitable merger partner.
As the firm moves ahead with yet another merger, one can only wish them luck given the challenges they’ve faced thus far. For more details, read the full report by American Lawyer.