What's Happening?
Bernstein Litowitz Berger & Grossmann, a prominent Manhattan law firm known for its significant shareholder lawsuits, is bringing back Mark Lebovitch, a retired partner, to help rebuild its corporate governance group. Lebovitch, who originally founded the group in 2006, is returning after a two-year hiatus during which he engaged in teaching and volunteer work. His return follows the departure of several lawyers, including four partners, who left to start a rival boutique firm. The departing lawyers, led by Jeroen van Kwawegen, cited a different vision for the firm, particularly regarding its approach to litigation. Bernstein Litowitz, however, stated that van Kwawegen was dismissed for misconduct. The firm has been involved in high-profile
cases, including a successful challenge to Elon Musk's Tesla pay package, which has influenced corporate law reforms in Delaware.
Why It's Important?
The return of Mark Lebovitch to Bernstein Litowitz is significant as it highlights the firm's efforts to stabilize and strengthen its corporate governance group following a wave of departures. This move is crucial for maintaining the firm's reputation and capacity to handle large-scale shareholder litigation, which has been a cornerstone of its success. The firm's involvement in high-profile cases, such as the challenge to Elon Musk's compensation, underscores its influence in shaping corporate governance practices. The internal changes at Bernstein Litowitz could impact its future litigation strategies and its ability to attract and retain top legal talent, which is vital for its continued leadership in shareholder disputes.
What's Next?
With Lebovitch's return, Bernstein Litowitz is likely to focus on rebuilding its corporate governance group and addressing any internal challenges that may have contributed to the recent departures. The firm may also need to reassess its litigation strategies and organizational culture to align with its long-term goals. The outcome of the appeal regarding the $345 million fee from the Tesla case will be closely watched, as it could have financial implications for the firm. Additionally, the establishment of a rival boutique by former partners could lead to increased competition in the shareholder litigation space.
