Clifford Chance Faces Challenges and Strategic Decisions in U.S. Amid Lawsuit and Partner Departures

Clifford Chance, a prominent global law firm, is currently navigating a series of challenges in its U.S. operations, particularly in New York. These developments include a lawsuit from former partners, the public disclosure of its partnership agreement, and a series of partner departures, all of which have implications for the firm’s growth strategy in the United States.

In June 2026, former partners Clifford Cone and Michael Sabin filed a lawsuit against Clifford Chance in a New York federal court. The suit alleges that the firm is attempting to reclaim nearly $5.8 million in compensation following their departure to Sidley Austin earlier that year. Cone and Sabin, who previously co-led the firm’s U.S. funds and investment management practice, argue that the firm’s clawback demand is unjustified. This legal action raises questions about the enforceability of such financial recoveries in legal contracts and the broader implications for partner mobility within the industry. ([law360.com](https://www.law360.com/internationalarbitration/articles/2495575/2-ex-clifford-chance-attys-say-firm-wants-to-claw-back-6m?utm_source=openai))

Compounding the situation, the lawsuit led to the public disclosure of Clifford Chance’s partnership agreement, a document typically kept confidential due to its commercially sensitive content. The firm successfully petitioned to have most of the agreement removed from the public court record, emphasizing the importance of maintaining the confidentiality of internal partnership arrangements. ([nonbillable.co.uk](https://www.nonbillable.co.uk/news/clifford-chance-partnership-agreement-private-clawback-dispute?utm_source=openai))

These internal challenges coincide with a series of partner departures from the firm’s New York office. In January 2026, Cone and Sabin, along with a third partner, left for Sidley Austin. Such movements underscore the competitive nature of the legal market in New York and pose questions about Clifford Chance’s ability to retain top talent in this critical market. ([lawyer-monthly.com](https://www.lawyer-monthly.com/2026/06/clifford-chance-sued-partners-clawback-demand/?utm_source=openai))

Despite these setbacks, Clifford Chance has demonstrated resilience and a commitment to growth in the U.S. market. In April 2023, the firm expanded its U.S. insurance practice by hiring partner Frank Monaco, a seasoned professional with over 26 years of experience in insurance transactional and regulatory matters. This strategic hire was part of a broader effort to strengthen the firm’s capabilities in the U.S. insurance sector. ([cliffordchance.com](https://www.cliffordchance.com/news/news/2023/04/clifford-chance-expands-us-insurance-practice-with-hire-of-partn.html?utm_source=openai))

Furthermore, in July 2023, Clifford Chance reported its eighth consecutive year of global revenue growth, surpassing £2 billion for the first time. This financial milestone reflects the firm’s robust global operations and its ability to navigate complex regulatory and business landscapes. ([cliffordchance.com](https://www.cliffordchance.com/news/news/2023/07/clifford-chance-delivers-eighth-consecutive-year-of-global-revenue-growth.html?utm_source=openai))

In June 2023, the firm appointed Ness Cohen as the managing partner for its New York office. Cohen, a long-time real estate lawyer at Clifford Chance, was tasked with overseeing the firm’s operations in one of its largest offices, signaling a renewed focus on strengthening its presence in the U.S. market. ([legal500.com](https://www.legal500.com/future-lawyers/2023/06/22/an-excellent-foundation-from-which-to-build-clifford-chance-appoints-new-office-managing-partner-in-new-york/?utm_source=openai))

While the recent legal disputes and partner departures present challenges, Clifford Chance’s strategic hires, leadership appointments, and consistent financial performance suggest a concerted effort to reinforce its position in the U.S. legal market. The firm’s ability to navigate these complexities will be crucial in determining whether these events are merely temporary setbacks or indicative of deeper structural issues within its U.S. operations.