The Legal Profession This Week: Age Discrimination at Partner Level & Problem in SPAC Paradise

By Dheepa M​


Too Old for the Job - Age Discrimination at Partner Level

Age discrimination may start posing problems for UK firms. Law.com reports that, in the UK, partnership agreements used to dictate mandatory retirement at around 60 years old. While this is rarely ever enforced, some firms seem to use performance-related reasons to remove partners once they reach a certain age. With clients being passed on to newer partners, the system reportedly works in favour of firm management who can ensure that the client stays with the firm instead of a specific partner. For partners that are forced out before they feel ready, proving discrimination may be difficult as firms can simply justify their actions as providing opportunities to younger employees. In 2020 an ex-Latham & Watkins partner brought an age discrimination claim against the firm. The details of the swiftly settled claim are limited. (Law.com)

Problem in SPAC Paradise

A large number of law firms have signed a letter in support of special purpose acquisition vehicles (SPACs), following a shareholder-led claim against SPAC company Pershing Square Tontine Holdings. The claim seeks to establish that SPACs are investment vehicles and should be subject to more stringent regulatory requirements. Many of the firms that have signed this letter have seen a majority of their M&A work this year come from record-breaking SPAC deals.

According to the Financial Times, there were 264 SPACs launched within the first two months of 2020. In total these SPACs raised $79.4bn globally and outperformed the entirety of 2020. Should the claimants succeed in securing this declaratory judgement, deal volume for corporate teams and overall revenue would reduce significantly. Law.com reports White & Case, Kirkland & Ellis, Sullivan & Cromwell, Ropes & Gray and Skadden, Arps, Slate, Meagher & Flom are the top five firms by value that have represented SPACs in the past year. All five firms have signed the aforementioned letter.

‘Business as usual’ – the notable deals and cases which went ahead this week:

Freshfields Bruckhaus Deringer is advising Petershill Partners on its £3.6bn initial public offering on the London Stock Exchange. Herbert Smith Freehills is advising the banks on the transaction.