Legal News for Mon 12/30 - Fox Corp's Defamation Lawsuit, Trump Loses Again to E. Jean Carroll, Oil Industry Climate Liability and Law Firm Mergers in '25

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This Day in Legal History: First Year with No Lynchings

On December 30, 1952, the Tuskegee Institute released a landmark report marking the first recorded year without a lynching of African Americans in the United States since the institute began keeping records in 1881. The grim practice of lynching—extrajudicial killings often carried out by mobs to enforce racial subjugation—had claimed thousands of lives, becoming a chilling emblem of racial terror, particularly in the Southern United States. Tuskegee's data captured the scope of this violence, documenting nearly 4,000 lynchings of Black individuals over the prior seven decades.

The significance of 1952 as a year without reported lynchings underscored the impact of growing civil rights activism, the waning influence of vigilante groups, and increasing legal accountability. This milestone also reflected shifts in public attitudes and the effectiveness of organizations like the NAACP, which tirelessly campaigned against lynching and for federal anti-lynching legislation. Despite this progress, racial violence and discrimination persisted in other forms, underscoring that the end of lynching did not mean the end of systemic racism.

"Strange Fruit," a haunting protest song famously recorded by Billie Holiday in 1939, had kept the horrors of lynching at the forefront of public consciousness. Its stark imagery of "black bodies swinging in the Southern breeze" served as a chilling reminder of the atrocities endured by Black Americans. While the 1952 milestone was a cause for solemn reflection, it was also a call to sustain the fight for racial justice and equality in a nation still grappling with deep-seated prejudices.

Rupert Murdoch and other senior leaders of Fox Corporation will face claims from investors alleging personal responsibility for financial harm stemming from false election conspiracy theories aired by Fox News. Delaware Chancery Court’s Vice Chancellor J. Travis Laster denied Fox’s motion to dismiss the lawsuit, stating that the plaintiffs had sufficiently argued that Murdoch could likely be held liable for knowingly permitting defamatory content to be broadcast. The lawsuit follows Fox’s record-breaking settlement with Dominion Voting Systems and comes as Smartmatic pursues a separate $2 billion defamation suit.

The investors claim that the leadership’s actions and decisions led to significant economic fallout, asserting that corporate governance failures allowed reputational and financial damage to occur. While the court’s decision enables the case to proceed, it does not guarantee success for the plaintiffs, leaving the ultimate outcome of the claims to trial.

Fox, Murdoch, Execs Must Face Election Defamation Payout Suit

A federal appeals court upheld a $5 million verdict against Donald Trump in a case brought by E. Jean Carroll, a former magazine columnist, who accused him of sexual assault and defamation. The decision, issued by a three-judge panel of the 2nd U.S. Circuit Court of Appeals, stems from a 2023 jury verdict that found Trump liable for sexually abusing Carroll in the 1990s and defaming her in a 2022 Truth Social post. While jurors did not find Trump guilty of rape, they awarded Carroll $2.02 million for sexual assault and $2.98 million for defamation.

Carroll has also secured an $83.3 million defamation verdict from a separate jury in January 2024, which Trump is appealing. These legal battles persist despite Trump’s return to the presidency following his 2024 election victory. Trump's defense argued that the trial judge improperly allowed testimony from two other women alleging past misconduct and included the infamous "Access Hollywood" tape as evidence. Both trials were overseen by U.S. District Judge Lewis Kaplan.

This case continues to highlight the lack of immunity for sitting presidents in civil litigation unrelated to their official duties, following a precedent set during Bill Clinton’s presidency.

Trump loses appeal of E. Jean Carroll $5 million defamation verdict | Reuters

The oil and gas industry is facing increasing legal and legislative pressure over its role in climate change. States like New York and Vermont have enacted “climate Superfund” laws, with New York’s targeting $75 billion from major polluters over 25 years to fund climate mitigation efforts. Meanwhile, multiple states and cities have filed lawsuits alleging misinformation campaigns by fossil fuel companies about climate change and plastic pollution. These efforts, while separate, are creating a coordinated front against the industry and building evidence to attribute emissions to specific companies.

Experts suggest that legislative efforts like climate Superfund laws and lawsuits may bolster each other by generating an evidentiary record for liability. However, there are concerns about overstepping legal boundaries, as courts may reject overlapping claims for damages under federal laws like the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Fossil fuel companies argue that climate-specific laws conflict with existing federal laws such as the Clean Air Act and may face challenges in implementation.

The American Petroleum Institute and energy companies have expressed resistance to these legal actions, with a preference for fighting rather than settling claims. While states hope to hold polluters accountable, the success of these strategies remains uncertain as courts, lawmakers, and the industry test the boundaries of new legal frameworks.

Climate Liability Laws, Litigation Add to Oil Industry Headache

The legal industry is set for another wave of consolidation in 2025, with several major law firm mergers scheduled for January 1. Among these, Troutman Pepper Hamilton Sanders will merge with Locke Lord to create Troutman Pepper Locke, a firm with 1,600 attorneys and projected annual revenues exceeding $1.5 billion. Similarly, Womble Bond Dickinson is merging with Lewis Roca Rothgerber Christie, combining to form a 1,300-lawyer firm with $742 million in revenues. Taft Stettinius & Hollister is joining with Sherman & Howard, projecting revenues of $810 million for the merged entity.

Philadelphia-based Ballard Spahr will combine with Lane Powell, forming a 750-lawyer firm operating in 18 U.S. offices. These moves follow 41 law firm mergers in the first nine months of 2024, with industry analysts predicting continued activity next year. Firms are responding to client demand for broader services and geographic reach, as businesses increasingly consolidate their legal needs with fewer providers.

Smaller and midsize firms are pursuing mergers to access new markets and clients, while the most profitable firms focus on lateral hires and internal growth. Rising costs, including attorney salaries and investment in generative AI technologies, are also pressuring firms to consolidate.

Transatlantic mergers are gaining momentum as well, with U.K.-based firms like Allen & Overy and Herbert Smith Freehills expanding into the U.S. market through deals with Shearman & Sterling and Kramer Levin Naftalis & Frankel, respectively. These global mergers highlight the evolving competitive landscape in the legal sector.

Law firms' quest for market share drives New Year's merger wave | Reuters

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