Rising Legal Costs: A Growing Burden for Public Companies

Law firm partner rates just hit their highest increase in a decade, with attorneys at top firms now charging upwards of $1,000 per hour. For public companies filing regular 8-Ks, this creates a simple but painful math problem. filing:

The Real Cost of an 8-K

Let's break down a typical 8-K filing:

• Outside counsel review: $1,500-2,000
• Filing agent fees: $2,000-3,000
• Internal team time: 4-6 hours per filing
• Total cost per filing: $4,000-6,000

For a company filing 10 8-Ks annually, that's $40,000-60,000 in direct costs alone - not counting the opportunity cost of internal teams managing the process instead of focusing on strategic work.

The Manual Process Tax

The problem isn't just hourly rates - it's the inefficiency of current workflows. Each 8-K follows a costly pattern:

• Internal teams prepare initial drafts
• Outside counsel reviews and revises
• Filing agents handle XBRL tagging and submission
• Multiple rounds of review between all parties

This process can stretch over days, creating unnecessary MNPI exposure and increasing both cost and risk.

Automating the Routine

Modern technology can transform this process. By automating routine drafting and filing tasks, companies can:

• Generate compliant disclosure documents in minutes
• Apply XBRL tags automatically with greater accuracy
• Validate filings against SEC requirements in real-time
• Maintain direct control over the filing process

This isn't about eliminating outside counsel - it's about using them strategically for high-value work rather than routine compliance tasks.

The ROI of Automation

A company filing 10 8-Ks annually currently spends $40,000-60,000 on outside services alone. Modern platforms can reduce this cost by 70% while improving accuracy and control. More importantly, they free up both internal teams and outside counsel to focus on strategic work that actually requires their expertise.

Looking Forward

As legal costs continue to rise, companies need to rethink their approach to securities compliance. The future lies in intelligent automation that can handle routine tasks while enabling teams to use outside counsel strategically. The technology exists today - the only question is how quickly companies will embrace it.

‍