What makes Shearman & Sterling one of the most prestigious law firms in the world? Founded in 1873 by Thomas Shearman and John William Sterling, this firm has grown from a small New York practice to a global powerhouse. Representing early clients like Jay Gould and Henry Ford, Shearman & Sterling quickly built a reputation for excellence. Today, the firm boasts nearly 1,000 attorneys across 20 offices worldwide. Known for top-tier rankings in areas like Securities, M&A, and Corporate Practice, the firm also excels in pro bono work and diversity initiatives. Their recent merger with Allen & Overy further cements their status as a legal giant.
The Origins of Shearman & Sterling
Shearman & Sterling's journey began in the late 19th century. Let's dive into the rich history of this prestigious law firm.
- Founding: Shearman & Sterling was founded on November 1, 1873, by Thomas Shearman and John William Sterling in New York City.
- Initial Clients: The firm's early success was largely due to its representation of prominent clients such as financier Jay Gould and industrialist Henry Ford.
- Rockefeller Family: Shearman & Sterling cultivated long-standing client relationships with the Rockefeller family, which has been a significant factor in the firm's growth and reputation.
Post-War Expansion and Global Presence
After World War II, Shearman & Sterling expanded its reach beyond the United States, establishing a global presence.
- Post-War Expansion: After World War II, the firm expanded internationally, establishing strong ties to German industry and helping companies like Siemens, BASF, and Daimler restructure and become major exporters.
- Global Presence: Today, Shearman & Sterling has nearly 1,000 attorneys in 20 offices across North and South America, Europe, Asia, and the Middle East.
Recognitions and Rankings
Shearman & Sterling has received numerous accolades for its expertise in various legal fields.
- Vault Rankings: The firm holds top twenty rankings in Securities, M&A, Private Equity, Securities Litigation, and General Corporate Practice according to Vault rankings.
- Chambers and Partners Rankings: Nationally, Shearman has Band 1 or 2 rankings by Chambers and Partners in Banking, Capital Markets, Corporate/M&A, and Projects (assorted).
- International Recognition: The firm is recognized globally for its expertise in dispute resolution/litigation, international arbitration, project finance, public international law, capital markets, and mergers and acquisitions.
Commitment to Pro Bono Work
Shearman & Sterling is dedicated to giving back through its pro bono efforts.
- Pro Bono Work: Shearman & Sterling has an active pro bono practice, providing legal services to non-profit organizations and individuals in need. The firm was pro bono counsel to the International Criminal Tribunal for Rwanda (ICTR) and assists FINCA International, a pioneering microcredit and village banking non-profit organization.
High-Profile Clients and Controversies
The firm has represented some of the biggest names in various industries, though not without controversy.
- Notable Clients: The firm has represented numerous high-profile clients including CVS Health in its $69 billion acquisition of Aetna, Electronic Arts in a $1 billion investment grade senior notes public offering, and Salesforce in its $2.8 billion acquisition of Demandware.
- Controversies: Shearman & Sterling was involved in a controversy related to the Malaysian sovereign wealth fund 1MDB, where the firm was named in civil complaints for providing a trust account through which hundreds of millions of dollars were illicitly siphoned. However, neither the firm nor its lawyers were accused of wrongdoing.
Merger with Allen & Overy
A significant milestone in the firm's history was its merger with another legal giant.
- Merger with Allen & Overy: On May 21, 2023, Shearman & Sterling agreed to terms in a merger with UK Magic Circle member Allen & Overy, creating a megafirm estimated to have over 4,000 attorneys across 49 offices. The combined firm became known as A&O Shearman.
Historical Significance and Early Expertise
The firm's early years were marked by significant achievements and expertise in litigation and corporate counsel.
- Historical Significance: Shearman & Sterling is one of the oldest law firms in the United States, with a history that predates many of the country's major corporations.
- Early Litigation Expertise: Thomas Shearman was known for his exceptional litigation skills, which were instrumental in the firm's early success. He excelled in courtroom drama and was heavily involved in community affairs.
- Corporate Counsel: John Sterling, on the other hand, was one of the first lawyers to serve as a corporate counsel. He worked as an insider “tactician” and “boardroom gun,” helping companies grow.
Pioneering Corporate Transactions
Shearman & Sterling has been involved in groundbreaking corporate transactions throughout its history.
- Field Law Firm: Both Shearman and Sterling worked for the Field law firm before founding their own partnership. The Field firm was a prominent law firm in New York City during the 1860s, representing clients like James Fisk and Jay Gould.
- Initial Public Offerings: Shearman & Sterling was involved in some of the first initial public offerings (IPOs) in the United States, including Merrill Lynch's IPO.
- Daimler Listing: The firm helped Daimler become the first German company to be listed on the New York Stock Exchange (NYSE).
Major International Deals
The firm's expertise extends to significant international transactions.
- Abu Dhabi National Oil Company: Shearman & Sterling advised the Abu Dhabi National Oil Company in its joint venture with ConocoPhillips.
- Qatar Sovereign Wealth Fund: The firm has also advised Qatar’s sovereign wealth fund on various transactions.
- Industrial & Commercial Bank of China: Shearman & Sterling assisted in the $22 billion public offering and dual listing of the Industrial & Commercial Bank of China on the Hong Kong and Shanghai stock exchanges.
Dispute Resolution and Capital Markets
Shearman & Sterling excels in dispute resolution and capital markets.
- Corporate Reach: The firm's corporate reach extends globally, with significant involvement in major transactions across different continents.
- Dispute Resolution: Shearman & Sterling has a robust dispute resolution practice, with extensive experience in litigation, arbitration, and investigation.
- Capital Markets: The firm is renowned for its expertise in capital markets, advising on all debt and equity products, from investment-grade and high-yield debt offerings to IPOs.
Commitment to Pro Bono and Diversity
The firm is dedicated to pro bono work and promoting diversity within its ranks.
- Finance Team: With over 1,000 attorneys in major financial centers, Shearman & Sterling's finance team is one of the strongest and deepest in the industry.
- Pro Bono Campaigns: The firm has been recognized for its commitment to pro bono work, particularly in the aftermath of significant events like the September 11, 2001 terrorist attacks. Shearman & Sterling provided pro bono assistance to victims and their families, securing compensation for a woman whose common-law husband died in the attacks.
- Diversity Initiatives: Shearman & Sterling has made significant efforts to maximize racial and gender diversity within the firm. The firm supports several inclusion networks created by associates to promote professional and business development, and it has been ranked among the Top 25 Best Law Firms for Diversity in the 2017 Vault Law Rankings.
Training, Compensation, and Work-Life Balance
Shearman & Sterling offers excellent training, competitive compensation, and a focus on work-life balance.
- Training Programs: The firm provides excellent training programs for its associates, offering hands-on workshops on substantive topics and CLE programs to enhance their legal knowledge.
- Compensation Structure: Shearman & Sterling offers competitive compensation structures, with salaries on par with other top-tier law firms in New York City.
- International Reach: The firm's international reach is a significant factor in its recruitment strategy. Shearman & Sterling looks for candidates who have done well in school and are well-rounded, with an interest in international law.
- Summer Program: The firm’s summer program is highly competitive, seeking candidates who are both brilliant and able to function in a practical business setting. Personality is just as important as academic credentials in deal making and litigation.
- Associates’ Work-Life Balance: Associates at Shearman & Sterling appreciate the firm’s emphasis on work-life balance. The firm hosts events like the 140th Anniversary celebration and various social events throughout the year, fostering a friendly and sociable culture.
Historical Milestones and Environmental Cases
Shearman & Sterling has played a role in numerous historical milestones and significant environmental cases.
- Historical Milestones: The firm has been involved in numerous historical milestones, including helping Jay Gould gain control of the Union Pacific and Western Union Telegraph, and assisting Daimler in becoming a major player in the automotive industry.
- Environmental Cases: In the wake of the 1991 Persian Gulf War, Iraq deliberately started oil well fires in Kuwait, causing significant environmental damage. Shearman & Sterling, along with other international law firms, helped Kuwait seek reparations from Iraq for environmental damage.
Legacy and Impact
Shearman & Sterling’s legacy extends beyond its legal achievements, shaping the legal landscape globally.
- Legacy: Shearman & Sterling’s legacy extends beyond its legal achievements. The firm has played a significant role in shaping the legal landscape of the United States and globally, maintaining its position as one of the most prestigious law firms in the world.
Shearman & Sterling's Legacy
Shearman & Sterling's journey from a small New York practice to a global legal giant speaks volumes about its resilience and adaptability. Founded in 1873 by Thomas Shearman and John William Sterling, the firm has consistently demonstrated excellence in corporate law, litigation, and international arbitration. With nearly 1,000 attorneys spread across 20 offices worldwide, Shearman & Sterling has played a pivotal role in major transactions and historical milestones. Its commitment to pro bono work and diversity initiatives further underscores its dedication to making a positive impact. The recent merger with Allen & Overy to form A&O Shearman marks a new chapter, promising even greater reach and influence. From representing high-profile clients like the Rockefeller family to advising on significant IPOs, Shearman & Sterling's legacy is one of innovation, integrity, and global impact.
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