This report analyzes attorney lateral movement across Am Law 200 firms in the United States for August 2026. The dataset, sourced from Leopard Solutions, tracks inbound and outbound lateral moves across 22 practice areas. The month recorded 1,258 attorney entries and 2,009 exits, resulting in a net outflow of 751 attorneys, the second-largest monthly net deficit recorded in the 2026 dataset, trailing only July’s -814.

August was widely expected to be the release valve for July’s attrition spike. The July report’s central hypothesis was that entries would catch up in August as receiving firms processed the same lateral transactions whose departures had already registered as July exits. That catch-up did not happen at the scale anticipated. Total entries fell again to 1,258, the second-lowest monthly figure of the year behind only February’s 1,248, while exits eased only modestly to 2,009, still the second-highest total of 2026. The result is an asymmetry that persists rather than resolves: firms are still losing attorneys faster than they are gaining them, and the gaining side of the market has not shown up in the volume the seasonal thesis predicted.

The practice-area picture is more differentiated than July’s broad-based spike. Litigation deteriorated further, posting a net of -384, the single worst monthly reading for any practice area in the 2026 dataset. Corporate improved meaningfully, its net loss narrowing from -261 to -200, and Intellectual Property improved dramatically, from -102 to -36, consistent with the boutique-migration normalization the July outlook anticipated. But the most significant development of the month is structural rather than seasonal: Government posts a net of -4, ending a seven-consecutive-month streak of positive net movement, and Labor & Employment falls to -22, its first clearly negative month after four straight months of positive-to-flat readings. Two of the year’s most consistent bright spots both turned negative in the same month.

August 2026 Lateral Movement by Practice Area

Source: Leopard Solutions. Filters: USA, Am Law 200 firms, August 1–31, 2026. Unassigned and Personal Injury excluded from totals.

Practice Area Analysis

Litigation — 404 Entries | 788 Exits | Net: -384

Litigation posts its worst month of 2026, worse even than July’s then-record deficit: 404 entries against 788 exits for a net of -384. This is the single largest net monthly deficit recorded by any practice area in the 2026 dataset, surpassing Litigation’s own July reading of -358 and eclipsing Corporate’s July figure of -261. Every seniority level worsened from July: associates fall to -309 (247 in, 556 out), versus July’s -282; partners fall to -52 (81 in, 133 out), versus July’s -42; and counsel falls to -23 (76 in, 99 out), a modest improvement from July’s -34.

The entry count of 404 is a step down from July’s 427 and confirms that the receiving-firm rebound the July report flagged as the key variable to watch did not materialize for this practice area. Instead, exit volume held essentially flat at 788 versus July’s 785, meaning the summer surge in departures did not taper as the bilateral-transaction thesis would predict. Litigation’s structural overcapacity correction, running since Q4 2025, now looks less like a seasonal spike working through the system and more like a sustained repricing of headcount, particularly at the partner level, where the -52 net is the worst partner-level reading for any practice area so far in 2026.

For Litigation attorneys, August reinforces that the market remains highly active but increasingly one-directional at the firm level: attorneys continue to move, but Am Law 200 platforms are absorbing a shrinking share of that movement relative to what is leaving them. High-demand profiles, white-collar, securities, complex commercial, appellate, remain the exception, continuing to draw competitive inbound interest even as the aggregate trend deteriorates.

Corporate — 234 Entries | 434 Exits | Net: -200

Corporate posts a net of -200 in August, an improvement from July’s -261 but still the second-worst Corporate reading of 2026. Entries fell to 234 from July’s 239, while exits declined more meaningfully to 434 from 500, a roughly 13% drop that accounts for the bulk of the month-over-month improvement. The associate level remains the primary driver: 329 exits against 155 entries, a net of -174, slightly better than July’s -205 but still the largest single-level deficit of any practice area besides Litigation’s associate cohort.

The partner level continues to deteriorate: 62 exits against 53 entries, net -9, extending July’s negative partner reading (-31) for a second straight month, though the magnitude has eased considerably. Counsel also improves somewhat, moving from -25 in July to -17 in August (43 exits, 26 entries). The month-over-month direction, less severe than July across every seniority tier, is consistent with the moderation the July report projected, but the practice area remains firmly in High Attrition territory and well short of June’s near-stabilization (-49).

Corporate’s trajectory through Q3 continues to look like a multi-month rationalization rather than a single bad month. The August improvement is real but partial, and firms should expect the practice area’s net deficit to remain elevated through at least September before any return to the near-equilibrium readings seen in Q2.

Intellectual Property — 105 Entries | 141 Exits | Net: -36

Intellectual Property improves sharply in August, posting a net of -36 after July’s -102 High Attrition reading. Entries more than doubled to 105 from July’s 54, while exits fell to 141 from July’s 156. The rebound is broad-based across seniority levels: partner net improves to -4 (26 in, 30 out) from July’s -30, and associate net improves to -23 (65 in, 88 out) from July’s -59.

This pattern is consistent with the July report’s characterization of IP’s attrition as a mid-summer boutique-migration surge rather than a structural break. The doubling of entries suggests that a meaningful share of July’s departing IP attorneys, particularly partners with prosecution, AI/tech, and life sciences practices, landed at other Am Law 200 platforms rather than exclusively at boutiques or in-house roles, and that August is registering the receiving-firm side of transactions that closed in July. IP has moved out of High Attrition territory entirely, though the practice area’s net remains negative for a fourth consecutive month.

Labor & Employment — 111 Entries | 133 Exits | Net: -22

Labor & Employment turns clearly negative in August, posting a net of -22 (111 entries, 133 exits) after July’s exact equilibrium of zero. This is the practice area’s first unambiguously negative monthly reading since at least April, breaking a run of four consecutive months (April +34, May +34, June +64, July 0) that had made L&E the year’s defining growth story. All three seniority levels move negative: associates fall to -12 (70 in, 82 out) after July’s +9, partners extend their decline to -3 (15 in, 18 out) after July’s -7, and counsel worsens to -7 (26 in, 33 out) from July’s -2.

Because the shift is broad across levels rather than concentrated at the top, it reads less like a single senior-level departure wave and more like a genuine softening of net demand. The structural tailwinds cited in the July report, non-compete litigation, AI employment policy, NLRB activity, have not disappeared, but August is the clearest signal yet that L&E is not immune to the same market pressures affecting Litigation and Corporate. Whether this is a one-month air pocket or the start of a trend will be the key L&E question for September.

Real Estate — 103 Entries | 122 Exits | Net: -19

Real Estate posts a net of -19 in August, a modest improvement from July’s -26 but the second consecutive negative month after three straight months of positive or near-flat readings in Q2. The partner level remains the primary drag: 33 exits against 21 entries, net -12, unchanged in magnitude from July’s worst-of-year partner reading. Counsel turns positive, however, improving to +2 (23 in, 21 out) from July’s -10, and the associate level narrows slightly to -9 (59 in, 68 out) from July’s -4 reversal.

The persistence of partner-level attrition for a second straight month is worth watching more closely than the modest headline improvement suggests. Real Estate’s underlying demand drivers, data center, industrial, and logistics work, remain intact, but the practice area has not yet returned to the positive net readings that characterized April through June.

Banking — 72 Entries | 96 Exits | Net: -24

Banking posts a net of -24 in August, a step down from July’s -15 and the practice area’s worst reading since the early part of the year. The story inverts from July: the partner level, which posted a standout +18 net in July (24 in, 6 out), falls back to a modest +2 in August (19 in, 17 out), while the associate deficit widens to -20 (44 in, 64 out) from July’s -26 (essentially unchanged) and counsel worsens to -6 (9 in, 15 out) from July’s -7.

The retreat in partner-level net movement, from the best reading of the year to near-equilibrium, is the more consequential shift than the modest headline decline, since sustained senior-level investment was the most durable positive signal in Banking’s July data. Associate-level churn continues to be the largest single driver of the practice area’s deficit, consistent with the pattern of attorneys completing transaction cycles before moving platforms.

Bankruptcy — 28 Entries | 36 Exits | Net: -8

Bankruptcy posts a net of -8 in August, close to the -6 readings that have characterized the practice area since March. Partner movement turns modestly positive (9 in, 8 out, net +1), and the deficit continues to be driven by counsel (3 in, 8 out, net -5) and, to a lesser extent, associates (16 in, 20 out, net -4). The practice area remains one of the year’s most stable, oscillating in a narrow band around net-flat rather than trending meaningfully in either direction, consistent with steady middle-market restructuring and healthcare-distress-driven demand.

Healthcare — 19 Entries | 40 Exits | Net: -21

Healthcare posts its worst month of 2026, a net of -21 (19 entries, 40 exits), more than double July’s -9 and a sharp reversal from the moderating trend the July report described. Every seniority level worsens: associates fall to -11 (5 in, 16 out) from July’s -7, partners fall to -1 (10 in, 11 out), roughly flat with July, and counsel deteriorates sharply to -9 (4 in, 13 out), a level not previously seen this year for the practice area.

Healthcare has now posted net negative movement in every month of 2026, and the cumulative full-year outflow moves well past 90 attorneys with August’s reading. The counsel-level deterioration in particular suggests that mid-career healthcare practitioners are finding boutique, in-house, or health-system opportunities in greater volume than in prior months, a trend consistent with the broader digital-health and regulatory-demand narrative but one that is now visibly accelerating rather than moderating.

Government — 14 Entries | 18 Exits | Net: -4

Government posts a net of -4 in August (14 entries, 18 exits), ending a seven-consecutive-month streak of positive net movement, the longest such streak of any practice area in the 2026 dataset. Entries fell sharply from July’s 25 to 14, while exits held roughly steady (17 in July, 18 in August). Partner movement flips to modestly positive (6 in, 4 out, net +2), continuing seven straight months of partner-level inflows, but associate movement reverses to -6 (3 in, 9 out) after July’s +6, the swing that accounts for most of the month’s decline.

A single negative month does not by itself overturn the structural DOJ, U.S. Attorney’s Office, SEC, FTC, and CFPB departure wave into private practice that has defined Government’s 2026 performance, and the continued partner-level inflow suggests the senior-level pipeline remains intact. But the sharp associate-level entry decline, from 9 to 3, is worth monitoring closely in September to determine whether August was a one-month pause or the start of a broader normalization.

ERISA-C&B — 23 Entries | 18 Exits | Net: +5

ERISA-C&B returns to positive territory in August with a net of +5 (23 entries, 18 exits), reversing July’s -6 and continuing the practice area’s pattern of flipping sign nearly every month (June +6, July -6, August +5). The partner level stays modestly positive (4 in, 3 out, net +1), and counsel swings back to positive at +4 (6 in, 2 out) after July’s -6, more than offsetting a flat associate reading (13 in, 13 out, net 0).

The counsel-level reversal is consistent with the structural pattern described in July, ERISA counsel migrating toward in-house roles at financial institutions and benefit plan sponsors, but the month-to-month volatility suggests these moves are lumpy rather than a smooth trend, making single-month readings for this practice area less reliable as standalone signals.

Tax — 27 Entries | 44 Exits | Net: -17

Tax posts a net of -17 in August, essentially unchanged from July’s -16 and continuing the practice area’s weakest stretch since March’s -25. Partner movement remains the primary concern: 10 exits against 5 entries, net -5, an improvement from July’s -9 but still negative for a second straight month after the brief April-May positive window. Associates drive the bulk of the deficit (15 in, 29 out, net -14), while counsel is modestly positive (7 in, 5 out, net +2).

International tax, fund formation, and M&A tax subspecialists continue to represent the strongest individual positioning within an otherwise soft aggregate reading, consistent with the pattern described in the July report.

Immigration — 14 Entries | 11 Exits | Net: +3

Immigration posts a net of +3 in August (14 entries, 11 exits), a step down from July’s strong +9 but a second consecutive positive month following June’s -3 dip. Counsel inflows account for the entire positive reading (4 in, 0 out, net +4), while the associate level is flat (9 in, 9 out) and the partner level turns modestly negative (1 in, 2 out, net -1). Immigration remains one of the more consistently resilient practice areas in the 2026 dataset, a status the August reading, positive despite the broader market’s continued softness, reinforces.

Insurance — 14 Entries | 14 Exits | Net: 0

Insurance achieves exact equilibrium in August (14 entries, 14 exits), a meaningful improvement from July’s -10. Counsel inflows drive the improvement (4 in, 0 out, net +4), offsetting a modestly negative partner reading (2 in, 3 out, net -1) and associate reading (8 in, 11 out, net -3). The practice area’s return to net-flat after a negative July is consistent with the view that July’s reading reflected a summer execution spike rather than a durable shift in Insurance’s broadly stable 2026 trajectory.

Information Technology — 14 Entries | 28 Exits | Net: -14

Information Technology posts a net of -14 in August, its worst reading of 2026 and a deterioration from July’s -9. Associates remain the primary driver (7 in, 18 out, net -11), continuing the migration of mid-level IT/AI/data privacy attorneys toward in-house technology roles described in July. The partner level turns modestly positive (5 in, 4 out, net +1), a reassuring sign after July’s first negative partner reading of the year, but counsel deteriorates to -4 (2 in, 6 out) from July’s roughly flat reading. The structural tension between BigLaw AI-practice demand and in-house compensation competitiveness remains the defining dynamic for this practice area.

Environment — 6 Entries | 13 Exits | Net: -7

Environment posts a net of -7 in August, an improvement from July’s sharp -12 spike but still negative for a second straight month after a near-equilibrium Q2. The associate level remains the weakest segment (2 in, 9 out, net -7), continuing July’s pattern of concentrated junior-level departures, while counsel turns modestly positive (3 in, 2 out, net +1) and the partner level is roughly flat (1 in, 2 out, net -1). Climate regulatory and energy-transition permitting demand remains intact, and the practice area’s easing from July’s spike is consistent with a seasonal rather than structural read.

Month-Over-Month Comparison: February–August 2026

Source: Leopard Solutions lateral movement data, Am Law 200 firms, USA. 2025 benchmark figures sourced from Firm Prospects 2025 AmLaw 200 Lateral Hiring Report.

The seven-month arc from February through August now tells a story in three acts. Act One (February–June) was gradual recovery, the net deficit compressing from -616 to -138. Act Two (July) was a sudden, broad-based attrition spike to -814. Act Three (August) was supposed to be resolution, the receiving-firm entry surge that would confirm July’s spike as seasonal rather than structural. Instead, August delivered a second consecutive severe deficit of -751, with entries falling further rather than rebounding.

The composition of August’s deficit differs meaningfully from July’s, however, and that composition is the more important story than the aggregate number. Corporate and Intellectual Property both improved substantially, exactly as the bilateral-transaction thesis predicted for practice areas where July’s exit surge reflected Q2 processes closing. Litigation did not improve, it worsened, suggesting its overcapacity correction is running on a different and more structural timeline. And two of the year’s most consistent positive performers, Government and Labor & Employment, both turned negative for the first time in months, a development the July data gave no indication of and that the seasonal framework does not fully explain.

Compared to the 2025 full-year benchmark, during which lateral hiring increased approximately 15% from 2024, the 2026 market has now posted back-to-back monthly deficits exceeding -750, a pattern without precedent elsewhere in the dataset. Whether September brings the delayed entry rebound or confirms a genuine reset in lateral hiring appetite across Am Law 200 platforms is now the central open question for the remainder of the year.

Q4 2026 Outlook

August complicates rather than resolves the interpretive question the July report posed. The practice areas where the seasonal, bilateral-transaction explanation held, Corporate and Intellectual Property, both showed the predicted improvement, and firms should expect that moderation to continue into September. Litigation is the clearest exception: its deficit widened for a second straight month, and its structural overcapacity correction shows no sign of nearing resolution. Firms and Litigation attorneys alike should plan for continued elevated attrition through at least Q4.

The break in Government’s and Labor & Employment’s positive streaks is the development most worth monitoring into September. Neither practice area’s underlying structural demand story, federal agency departures for Government, non-compete litigation and AI employment policy for L&E, has changed, which argues for August being a pause rather than a reversal. But a single month is not enough to distinguish a pause from a genuine inflection, and a second consecutive negative month for either practice area in September would meaningfully change the year’s narrative for what have been 2026’s two most dependable bright spots.

For attorneys and the firms that employ them, the lesson carried over from July remains unchanged: the market continues to reward clarity of positioning, proactive engagement, and practice area awareness over waiting for the aggregate monthly number to turn favorable. Those conditions, where they exist, persist regardless of what any single month’s headline figure suggests.

Data sourced from Leopard Solutions | Analysis by Lateral Link | laterallink.com | August 2026