The Reed Smith law firm said it will cut salaries for all U.S. associates by 10 percent across the board, effective July 1.

In an internal memo that was originally leaked to the Web site Abovethelaw.com Wednesday afternoon, managing partner Gregory Jordan said the firm had already adopted changes to its business plan because of the recession, changing client demands, and the competitive landscape in the legal industry. Among other things, Jordan said it has meant lower compensation levels for partners, though he did not specify by how much.

A spokeswoman for the Pittsburgh-based firm, which has about 280 employees in Philadelphia, confirmed the authenticity of the memo.

Jordan said the firm will set the salaries for the incoming class of first-year associates in the United States at a later date, but they will be at least 10 percent lower than the current levels. Jordan said the firm will freeze associates’ salaries in its European and Middle Eastern offices, and will set the starting salary for newly qualified associates in the United Kingdom about 10 percent lower than the current level. Asian operations are not affected by the action.

Herzfeld & Rubin P.C. is relocating its headquarters to 125 Broad St. in New York's Financial District, after a 50-year stint at 40 Wall St.

Mack-Cali, which owns roughly 40 percent of the 40-story office tower, signed the global law firm to a 20-year, 56,322-square-foot lease. The new deal brings the REIT's 525,000-square-foot portion of the 1.3 million-square-foot high-rise to full occupancy. Mark Shapses, Joseph Messina and Jason Schwartzenberg with Studley represented Herzfeld & Rubin.

The law firm joins prominent tenants such as Sullivan & Cromwell LLP and the American Civil Liberties Union (ACLU), both of which own their space. Herzfeld & Rubin's 64,736-square-foot lease at 40 Wall St., which encompasses floors 50 through 56, is up at the end of this year. The new space offers comparable size, but on less than two floors.

The new deal brings a nearly four-year search to an end. "We were hired in 2005 to find a more cost-effective, efficient occupancy solution for the firm, and periodically went out into the market looking for space," said Shapses. "The market went through extraordinary price and availability changes in that period. The right situation with the right economics hadn’t surfaced until now."

Schwartzenberg noted that the space hadn't even hit the market yet. "We knew it would soon be vacated so we moved quickly to secure it."

Mack-Cali will cover 100 percent of the modifications Herzfeld & Rubin requires. The concession package also includes free rent and furnishings.

Continuing its string of long-term deals, Mack-Cali also signed Global Aerospace to a 12-year lease in Parsippany, NJ. The aerospace insurer took 47,891 square feet at One Sylvan Way at the Mack-Cali Business Campus. Kenneth Flynn of Jones Lang LaSalle represented Global Aerospace.

Global Aerospace is relocating its U.S. headquarters from 22 Sylvan Way, also part of the Mack-Cali Business Campus. Wyndham Worldwide Operations leased the entire 250,000-square-foot office building for 15 years in January, according to CoStar information.

A computer expert claims in a lawsuit that Minneapolis law firm Leonard, Street and Deinard owes him $775,000 for storing digital evidence in a case involving the city’s two largest newspapers.

Mark Lanterman of Computer Forensic Services said he stored 62 terabytes of Star Tribune data, costing $155,000 a month, for five or six months before he deleted it, the Star Tribune reports. He claims the law firm still owes him $775,000 in unpaid bills.

The law firm’s reply to the suit says Lanterman has already been paid "handsomely" for every invoice he submitted on time, for a total of $854,000, the story says. The last invoice came in too late for the firm to bill the Star Tribune, ordered to pay expenses in the case, the court document said. The firm also says it didn’t have a signed contract with Lanterman.

L'Oreal SA has taken eBay Inc. to court across Europe, suing in Britain, Germany, France, Belgium and Spain over the sale of fake fragrances and cosmetics on the site.

L'Oreal claims there is an increasing volume of counterfeit goods being sold on eBay. The online auctioneer said negotiations between the companies on the issue broke down because L'Oreal was being unreasonable.

Justice Richard David Arnold ruled in London's High Court that eBay Europe was not liable for trademark infringements committed by its users.

EBay said in a statement that the British ruling was "a victory for consumers and the thousands of entrepreneurs who sell legitimate goods on eBay every day."

A call placed with L'Oreal's London office seeking comment was not immediately returned.

Earlier this month, a French court ordered L'Oreal and eBay to settle their differences, giving them until May 25 to come up with a mediated settlement. Other cases elsewhere in Europe are still pending.

In February, the 9th U.S. Court of Appeals struck down the law as a free speech violation that could limit minors' access to other material under the guise of protecting children. The court said there are less restrictive ways, such as parental control, to prevent children from accessing violent video games.

The court also dismissed as unpersuasive the scientific studies linking violent video games to aggressive and anti-social behavior.

The state Legislature passed the law in 2005, but it never took effect because the video game industry sued soon after Schwarzenegger signed the measure that would have barred sales and rentals to anyone under the age of 18.

The governor and attorney general argued Wednesday that the same legal justifications for banning minors from accessing pornography can be applied to violent video games.

Kagan gave the keynote address at the daylong event that also included a lunchtime speech by retiring Justice David Souter.

Wood, who serves on the U.S. Court of Appeals for the 7th Circuit in Chicago said she had long planned to attend the conference, but she would not answer any questions about the court.

She declined to say whether she was visiting the White House during her stay in Washington.

Wood and Kagan are among the candidates the president is considering to replace Souter, according to officials familiar with President Barack Obama's thinking.

Also attending the day's panel discussions at Georgetown University Law Center were Justice Stephen Breyer and retired Justice Sandra Day O'Connor, who has led the annual event since her retirement from the court in 2006.

She noted that Souter is "going to join me in that now very exclusive group of retired Supreme Court justices. His presence will double the membership."

"There are no neat or easy answers here," Obama said in a speech in which he pledged anew to "clean up the mess at Guantanamo" that he said the nation had inherited from the Bush administration.

Obama conceded that some of the detainees would end up in U.S. prisons and insisted those facilities were tough enough to house even the most dangerous inmates.

Obama decried arguments used against his plans.

"We will be ill-served by the fear-mongering that emerges whenever we discuss this issue," he declared.

Speaking at the National Archives, Obama said he wouldn't do anything to endanger the American people.