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Compared to law firms' advertised rack rates, collections in Big Law continued to slump in 2023, according to reports from Am Law 200 firms that disclosed last year's realization rates to The American Lawyer this spring.
In a group of 86 Am Law 200 firms, those within the Am Law 50 saw an average realization decline of 2% in 2023. Smaller firms fared better: The Am Law 51-100 had realization fall by an average of 1.6%, while the average decline was 1.3% for the Second Hundred. Meanwhile, realization at midsize firms remained flat.
Realization leveled out or began to decline for many in the Am Law 100 last year after a COVID-era uptick, which some analysts attributed to firms' emphasis on billing hygiene.
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