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The End May Be Near As Stroock Loses More Than Half Its Partners To Hogan Lovells

The future does not seem bright for this firm.

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999210Late last week, Pillsbury Winthrop ended its non-exclusive merger talks with Stroock & Stroock & Lavan, yet another law firm that seemed uneasy when it came to the “financial and other risks involved” with a Stroock combination. At the time, Stroock seemed to indicate that it had “options” — but unfortunately, it looks like those options may now include a possible closure, all thanks to the Hogan Lovells.

Late on Friday, Hogan Lovells revealed that it would be hiring 30+ partners away from Stroock in a mass lateral move, including the firm’s real estate team as well as its co-managing partner, Jeff Keitelman. More than half of Stroock’s partners are now headed to Hogan Lovells, which paints a rather bleak picture for Stroock. As noted by CEO Miguel Zaldivar, it was nothing personal. “We are on a mission to grow in the U.S., and this is an outstanding opportunity to deliver on our strategy to invest in premium practices and expand our client relationships,” he offered in a statement. “This is about growth in New York with a premiere team.”

The American Lawyer has insights on what may be Stroock’s dismal future:

What comes next for Stroock after losing roughly half of its partnership in a single lateral departure is not known, but given its financial difficulties, lateral departures and inability to find a suitable combination, the prospects are bleak.

Stroock’s partnership currently numbers about 46 partners, according to its website on Friday. It’s unclear how many would be left after more than 30 partners leave for Hogan Lovells.

“It is sad when this happens to a firm,” Kent Zimmermann, a strategic consultant at Zeughauser Group who specializes in mergers, told Am Law. “But, there is an opportunity for other firms to benefit greatly from picking up high-quality teams. But I feel for the staff and others in a bad position.”

Stroock was founded almost 150 years ago. It would be a real shame if things were to end so disappointingly for the firm.

Over 30 Stroock Partners to Join Hogan Lovells as NY Firm’s Prospects Appear Bleak [American Lawyer]

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Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.

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