#33 The Legal Profession This Week - Client Fallout and Potential Merger?​


Allen & Overy’s Fallout with Credit Suisse

Credit Suisse has announced plans to impose 'sanctions' on Allen & Overy (“A&O”) over likely client conflicts and data breaches within the firm (Law.com).

A&O was first appointed to the Swiss banking giant’s global legal panel in 2018. The bank is a large client for the firm, allegedly contributing an estimated £25 and £30 million of the firm’s annual revenue (Law.com).

According to Law.com, the bank’s general counsel, Romeo Cerutti, has been concerned over A&O’s advisor role to the failed financier, Greensill Capital. In addition to client conflicts, Credit Suisse’s in-house team was alarmed by A&O’s data breach earlier this year.

Law firms have always been vulnerable to cyber attacks due to the confidential deals and client data they are privy to. For example, in 2017, DLA Piper was hit by a major cyber attack which crippled its phones and computers across the UK, Europe, the US and the Middle East.

Moreover, since work-from-home models are being increasingly adopted following the outbreak of the pandemic in 2020, data breaches and cyber attacks have become increasingly common in law firms as firms have shifted their operations online. According to Law.com, in February, both Goodwin and Jones Day were impacted by a cyber attack after a third-party vendor, Accellion, was targeted by hackers.

Clyde & Co and BLM Mull Potential Merger

Clyde & Co and BLM are currently negotiating a merger which would “create an insurance specialist with a combined revenue of around £735m.” (The Lawyer). Although talks of the potential merger began recently, the details of the merger have been kept tight within the duo’s senior leadership.

The report could be a sign of merger activity within the legal sector reviving after the pandemic (Law Society Gazette). Both firms have an insurance risk focus and a merger between the two will create an insurance ‘super-firm’ which will consolidate both firms' insurance specialities internationally and regionally within the UK.

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

A series of firms have been appointed in various roles following the Bulb Energy’s administration. As discussed above, Bulb Energy, the largest UK energy supplier has collapsed following this year’s surging gas prices, and is the first to undergo the 'special administration' procedure (The Lawyer).

Linklaters is acting for Teneo Restructuring, who has been appointed as special administrator for Bulb Energy. Watson, Farley & Williams (“WFW”) is advising Bulb’s creditor, Sequoia Economic Infrastructure Income Fund (“Sequoia”) on the special administration of Bulb Energy and the normal administration of Simple Energy, Bulb Energy’s parent company.

The funding agreement was negotiated between Linklaters and Hogan Lovells. Finally, the application for normal administration in relation to Simple Energy, the parent company, was managed by Freshfields Bruckhaus Deringer.