US firm Sedgwick is to cease trading early next year in a move that will affect over 80 partners, including six in London.
In a firm statement, Sedgwick confirmed it would be closing in early January after a spate of partner departures in the last year.
Of the UK firms, Kennedys has particularly boosted its partner ranks via Sedgwick raids after taking teams in New York and Chicago.
Kennedys also opened an office in Bermuda following the recruitment of five lawyers from Sedgwick Chudleigh, which was previously associated with the US firm.
In US firm moves, a total of 23 lawyers joined US firm Drinker Biddle & Reath to open an office in Texas earlier this year. A further 35 lawyers left to launch a spin-off litigation boutique just weeks later.
Sedgwick’s statement said: “We have concluded that the best way to allow our lawyers to continue providing great service to our clients is by ceasing operations and moving to other excellent law firms.”
“We are pleased that most of our lawyers and staff have opportunities with very fine firms.”
The move affects over 80 partners, nearly 50 associates and up to 25 counsel. The firm has 11 offices in total, with the London base the only one outside the US.
The City office is led by office managing partner Edward Smerdon, who joined Sedgwick from RPC in 2010.
Known for its insurance and litigation work, Sedgwick’s lawyers are likely to attract other firms operating across similar sectors.
Clyde & Co has been highlighted as a potential suitor although nothing has yet been confirmed by the firm. The firm opened its fourth US office in 12 months last summer, launching in Los Angeles.
The firm’s focus has turned to the UK, confirming plans to launch a new office in Bristol through hires from Womble Bond Dickinson and Kennedys.