Overstating Profits is a Trend Among Law Firms
08/22/11
Overstating profits is a trend among law firms
According to American Lawyer magazine, the most frequently used measure in $100 billion global corporate-law-firm industry is the ranking of ''profits per partner''. In 2010, more or less 22% of the top 50 firms overstated their profits per partner by more than 20%. Citigroup, which independently reviews many law firms' financial performance, revealed the findings this month in Armonk, N.Y. The AL magazine stated that 100 biggest law firms' profits rose by 8.4% per partner, to an average of about $1.4 million in 2010. In addition to that, with about 22% of the top 50 firms exaggerating their 2010 profits-per-partner figures by more than 20%, other 16% magnified their numbers by 10% to 20%. It has also become quite hard to get accurate figures because of the moving variables.
Overstating profits is a trend among law firms
According to American Lawyer magazine, the most frequently used measure in $100 billion global corporate-law-firm industry is the ranking of ''profits per partner''. In 2010, more or less 22% of the top 50 firms overstated their profits per partner by more than 20%. Citigroup, which independently reviews many law firms' financial performance, revealed the findings this month in Armonk, N.Y. The AL magazine stated that 100 biggest law firms' profits rose by 8.4% per partner, to an average of about $1.4 million in 2010. In addition to that, with about 22% of the top 50 firms exaggerating their 2010 profits-per-partner figures by more than 20%, other 16% magnified their numbers by 10% to 20%. It has also become quite hard to get accurate figures because of the moving variables.
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