1/6/2026
Law Firms Nab Activism Defense Stars as Competition Heats Up
Bloomberg Law (01/06/26) Hutchinson, Drew
Attorneys who specialize in defending companies against activist investors are in high demand, fueling partner moves that have boosted existing leaders such as Sidley Austin and helped other firms like Skadden become more entrenched in these specialties. Firm migration among activism attorneys has been ticking up for a couple of years with hiring that included longtime investor-side adviser Elizabeth Gonzalez-Sussman’s 2024 jump to represent companies at Skadden, Arps, Slate, Meagher & Flom LLP. Last year was no different: Firms were asking for specialists—not dabblers—as they looked for lawyers, said legal recruiter Avery Ellis, managing partner at CenterPeak LLC. The need to bolster activism defense practices stems from a rapidly changing regulatory environment governing shareholder engagement—but also the swell of activist investors, such as hedge funds, looking to influence companies on operational and financial matters, said Columbia law professor Eric Talley. “There’s been a big uptick in activism practice and with it, kind of a bidding war for the best activism-oriented attorneys out there,” he said. Activists launched 763 new campaigns in 2025, a slight uptick from the previous year’s 753, according to Bloomberg data known as league tables. Elliott Investment Management exemplified both sides of this legal work in 2025. Olshan Frome Wolosky LLP helped the hedge fund engage PepsiCo Inc. (PEP), and Skadden defended Honeywell International Inc. (HON) from Elliott in the first half of the year. The Bloomberg data relies partially on law firm submissions, which catapulted Japan-based Nishimura & Asahi into third place for engagements this year after submitting its non-public work for the first time. Sidley Austin LLP held its years-long top spot as the busiest shareholder activism defense firm. Meanwhile, Latham & Watkins LLP rose to second place, up from third last year. Skadden earned the top spot for the value of campaign stakes, which represents the value of shares investors held in companies facing investor action. That’s due in part to Gonzalez-Sussman joining the firm, where she led Skadden’s existing experts to forge a formal shareholder activism unit. “When you’re dealing with a large-cap company, that’s why your numbers go up,” she said of Skadden’s $11 billion in campaign stakes. “When they’re hit with a very big activist, we’re perfectly primed to do it. That’s why our numbers in total may be lower but our dollar amounts really demonstrate that we’re representing the most high-profile activist campaigns.” Other notable personnel changes: Carmen Lu joined Paul, Weiss, Rifkind, Wharton & Garrison LLP as an activism defense partner last January after eight years at Wachtell, Lipton, Rosen & Katz. One month later, White & Case LLP brought on Richard Brand from Cadwalader, Wickersham & Taft LLP as its global shareholder engagement head. It marked the firm’s first foray into activist-side work in the U.S. Sullivan & Cromwel LLP moved up the 2025 list of rankings after picking up two shareholder activism co-chairs from Vinson & Elkins LLP, and Sidley Austin LLP added a former Skadden activism defense partner. Firms view activism defense in different ways. It can bolster relationships with companies and funnel business into other practice areas, or it can be a specialty that carries its own weight. “You want specialists,” said Kai Liekefett, co-chair of Sidley’s shareholder activism and corporate defense practice. “If you have heart problems, would you rather go to a heart surgeon or a general practitioner?” When firms are looking for new talent, they often want people who’ve worked exclusively with either companies or activists, Ellis said. Practices themselves are often the same, either representing one or the other. But corporations and activist investors are so well-capitalized these days that representing either side feels like general commercial litigation, Talley said. Firms realize they have a lot to gain from both blue-chip companies and sophisticated investment funds. White & Case is taking a dual-sided approach, with Brand and his team representing both boards and investors. “It gives us a unique perspective,” Brand said. “If you have well-rounded corporate lawyers working on activism matters, they’re going to be more effective as advisers.” Activism is closely tied to other areas of corporate law. Lu, who joined Paul Weiss to meet client demand for shareholder activism expertise, says the firm’s M&A practice creates new clients, and vice versa. Deals close, activists pounce on the new entities, and companies need representation. Latham & Watkins has a similar dynamic. The firm serves as primary corporate governance counsel for more than 400 public companies, so shareholder activism defense growth is a testament to the firm’s overall expertise, said Christopher Drewry, global co-chair of Latham’s shareholder activism and corporate defense practice. “We’re at the top of the league tables in all of these areas,” he said. “If you treat activism as this own special thing rather than as a broader perspective,” clients lose out. Sometimes, law firms invest in activism defense experts but don’t formalize the practice group. Wachtell Lipton views itself as a board and company adviser, and shareholder activism defense is a natural outgrowth, said Elina Tetelbaum, head of activism defense. Activist-side firm Olshan is an example of a specialized operation—and it’s working out great, said Andrew Freedman, chair of its shareholder activism practice. “Because this is all we do, we’re very unique,” he said. To complement the activism practice and drive new business, the firm plans to launch a fund formation group this year, Freedman said. The practice would help clients create hedge funds or additional investment vehicles, he said. Activism defense will only become more important as more first-time activists engage with companies, Liekefett said. While the past year was the busiest he’d seen, boards are still underestimating the threat activist investors present, he said. Attorneys eyeing the space will need empathy, well-roundedness, and the ability “to be a therapist to some degree,” Liekefett said. “Most of your clients will face enormous stress,” he said.
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