👋 G’day
Today’s brief:
Smart glasses fed cross-exam answers
Firms train juniors with robot partners
ASIC hits Macquarie over short sales
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WORD ON THE STREET

Partner-talk training

Perkins Coie — the firm soon to partner up with Ashurst — is using AI avatars to teach junior lawyers how to talk to partners, calling it "a safe place to fail." The firm partnered with Levra, founded by a former Clifford Chance associate, to develop simulations for juniors to boost their interpersonal skills. The irony when firms turn to robots to teach their juniors how to communicate with their partners: NB
In a very clear case of what not to do, a witness has been hit with indemnity costs after he was caught wearing smart glasses during cross-examination. His high-tech spectacles were linked to his phone, feeding him live answers. While the witness sought to blame ChatGPT, his contact list showed multiple calls made to a contact called “abra kadabra”: Legal Cheek
The Fair Work Commission has delayed a major case on whether employers must consult staff before deciding on AI job cuts. The reason for the delay? Ironically, the Commission is swamped by a surge in dodgy dismissal claims written by AI. Meanwhile, the Australian Services Union wants a six-month special notice period for AI-related redundancies: AFR
Hong Kong's stock exchange wants to name and shame the lawyers, auditors and consultants behind botched IPO filings. With HK being the world’s most sought-after IPO venue by volume last year, regulators are fed up with copy-paste applications and marketing fluff on the back of Chinese listings flooding in. 15 companies (and their banks) have already been named since 2014, including Goldman Sachs, JPMorgan, Morgan Stanley, and Macquarie: FT
PRACTICE POINTS

Force majeure surge
⚖️ Contract: It’s time to review your Force Majeure clauses. The escalating Middle East conflict is disrupting shipping routes, energy markets and supply chains, with multiple major producers already declaring force majeure, including over Qatar's LNG facilities. KWM flags that businesses need to act now. Force Majeure relief depends entirely on the clause's wording and governing law; increased costs or reduced profitability alone won't cut it. The doctrine of frustration is narrower still and automatically kills the contract. Getting it wrong is a dangerous game — incorrectly invoking either can itself amount to a repudiatory breach: KWM
⚖️ Corporate: The Takeovers Panel hasn't held back after the Emu NL saga. Incumbent directors (1) repeatedly defied interim orders, (2) postponed a shareholder-requisitioned EGM multiple times, (3) pushed through a dilutive share placement before the rescheduled meeting, (4) and heavily redacted the requisitioning shareholders' statement. Costs were ordered against the company and its former directors personally, even though the directors weren't parties to the proceedings. Off the back of this, the Panel is now consulting on revised Guidance Note 4, proposing to drop the longstanding position that costs orders are the "exception not the rule": Ashurst
⚖️ Employment: The Department of Defence has been convicted and fined $188k for failing to manage psychosocial hazards. The Court’s findings came after a 34-year-old Royal Australian Air Force technician died following four separate "work plans" in six months. Despite the worker displaying clear signs of distress, supervisors didn't refer him for support, place him on leave, or pause the work plan process. Comcare's investigation found Defence's own policies identified the risks but controls weren't applied in practice. The court also made an adverse publicity order under s 236 of the WHS Act: Kingston Reid
TALKING POINTS

JPM’s Epstein problem

Did you hear…
JPMorgan processed over US$1bn in transactions for Jeffrey Epstein across 15 years, letting him withdraw more than US$5m in cash suspected of funding sex trafficking. Staff flagged concerns early, but senior bankers kept the account open. At various times, Epstein was one of the biggest income generators for the bank. And at one point, two 18-year-old "models" walked into a branch listing Epstein as guarantor. The bank opened the accounts anyway. CEO Jamie Dimon insists he never met the man: FT
Also…
Victoria's just settled the COVID class action for $125m rather than face a 12-week trial, with Quinn Emanuel acting for around 1,000 retail businesses. The payout's reportedly north of $50m, which sounds decent until you clock the claim was worth up to $2.6bn. The state, repped by HSF Kramer, was staring down a ~$40m legal bill anyway, so it cut its losses. The settlement is subject to Supreme Court approval: AFR, Lawyerly
DEAL ROOM

Twiggy’s nickel play
👀 A PE consortium fronted by a high-profile mining identity is circling BHP's mothballed Nickel West operations. Sources point to Andrew Forrest as the logical candidate. One scenario has Forrest spinning his existing nickel interests (including Wyloo Metals) into a PE-backed vehicle. BHP's agreed to retain $2bn to $3bn in rehab liabilities: The Australian
🔋 WinDC, the renewable-powered data centre start-up, has launched a $176m Series A raise to fund its first deployment. The pitch: regional Australia generates more wind and solar than the grid can carry to cities, so WinDC wants to place shipping container-sized data centres right at the source: AFR
SECTOR SNAPSHOT

Macquarie fined


DIGGERS
🚜 Northern Star is preparing for lower guidance after weaker milling and reduced productivity. Shares fell by 16% on the news. And Former Boss Energy CEO Duncan Craib is suing stock forum HotCopper for defamation in the WA Supreme Court, alleging eight posts published under pseudonyms were false and damaging. The posts have since been deleted: MoM, AFR

FIN
🏦 Macquarie Securities has been hit with a $35m fine after the NSW Supreme Court found it misreported tens of millions of short sales over more than a decade. Systems failures went undetected despite internal reviews, with up to 1.5 billion transactions affected. ASIC also secured an independent expert review of MSAL's reporting systems: ASIC

RETAIL + REAL ESTATE
🏠 Forza Capital is in due diligence to snap up Myer's iconic Bourke Street flagship for around $450m, potentially reuniting the property under a single owner. Vicinity, Abacus and Charter Hall are selling. Meanwhile, Deakin University has offloaded its Art Deco T&G House in Geelong's CBD for under $6m. The 33-studio student accommodation building will keep housing students under new ownership: The Australian, RealCommercial

TECH + STARTUPS
📱 Microsoft and Meta each added nearly US$50bn ($71bn) in data centre leases last quarter, pushing total future commitments among the big cloud players past US$700bn. Oracle leads at US$261bn. The obligations sit off-balance sheet until payments kick in, with terms stretching up to 19 years: AFR
JOBS

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