Weil, Gotshal & Manges LLP, the nearly century-old Wall Street law firm known for its bankruptcy and restructuring expertise, is preparing to dissolve after a wave of partner departures, leadership uncertainty and failed merger talks left it unable to remain viable. The firm’s partners is expected to vote on the dissolution in the coming days, with operations continuing during the wind-down over the next several months, potentially affecting 2,000 employees, including approximately 1,200 lawyers. Its collapse highlights broader changes in the legal industry, where intensifying competition, shifting client loyalties, and high-level talent moves are making it increasingly difficult for some firms to survive.
MARKET MOVEMENTS
Honigman LLP launches in Boston with Womble Bond Dickinson (US) LLP attorney trio, Cristin Cowles, Danielle Herritt, and Deb Vernon
Venable LLP adds former SEC Counsel, Susan Poklemba, to D.C. team
Clyde & Co bolsters global aviation team with two partners, Dave Pflieger and Tannie Kwong
Cleary Gottlieb Steen & Hamilton LLP adds private equity veteran from Simpson Thacher & Bartlett LLP in New York, Mark Pflug
FIRM SPOTLIGHT - ALSTON & BIRD LLP
Alston & Bird is an Atlanta-based law firm with more than 900 attorneys across 11 U.S. offices and two international locations. Founded in its current form through a merger, the firm has expanded into major markets, including New York, California, Chicago, and Washington, D.C., with international offices in London and Brussels. Its key practice areas include healthcare, privacy and data security, real estate, tax, finance, and cybersecurity, serving clients across industries such as technology, financial services, energy, and insurance. Known for handling complex business transactions and data security challenges, the firm also prioritizes employee development, collaboration, and community involvement. It has earned recognition on Fortune’s 100 Best Companies to Work For list for 27 consecutive years.
INDUSTRY INSIGHTS
The number of court cases around the world involving AI-generated errors fell in both the second and third quarters of 2026, according to new research by a legal scholar who recently warned that the risks of using artificial intelligence in litigation now go beyond so-called hallucinations. French data consultant Damien Charlotin found 455 cases in the first quarter of 2026, compared with 423 in the second quarter and 359 in the third.
Latham & Watkins has elected 36 associates to its partnership in its second round of promotions in 2026, with its New York office gaining the biggest share, just under a third of those who leveled up.
Cleary Gottlieb Steen & Hamilton LLP announced on Monday the promotion of 31 attorneys, including 15 partners and 16 counsel, one shy of the record it reached last year. The promotions, effective January 1, bring Cleary's worldwide count of partners to 257 and counsel to 57.
Kirkland Challenges BigLaw Transparency
Kirkland & Ellis, the world’s highest-revenue law firm, plans to stop publicly reporting its annual financial results after 2026, raising questions about whether other BigLaw firms will follow. While financial transparency has fueled competition, helped firms attract clients and lateral hires, and encouraged business growth, critics argue it has also pushed firms to prioritize rankings and short-term profitability over long-term strategy and workplace culture. Experts expect few firms to follow Kirkland & Ellis’s lead immediately, but the decision comes as the industry faces major changes from AI, alternative investment models, and evolving billing practices. With Kirkland & Ellis investing $500 million in proprietary AI technology, stepping away from public rankings could give firms more flexibility to pursue strategic changes without external scrutiny.
Partner Pay Soars as Billable Hours Fall
Average law firm partner compensation rose 10% from 2023 to 2025, reaching a record high of just over $1.5 million, even as average billable hours fell 4% to 1,656, according to a survey of partners at the 200 largest U.S. law firms by revenue. The report attributed the trend to rising billing rates, which increased 11.5% to an average of $1,242 per hour, allowing firms to generate more revenue despite fewer hours worked. However, compensation gains remained concentrated among top earners, with median compensation increasing just 3% to $825,000, compared with $3.5 million for partners in the 90th percentile. Client originations remained the biggest factor influencing compensation, accounting for roughly 62% of differences among partners, while billing rates and client originations together explained 70% of compensation variation.
