Bill Savitt, a leading figure in U.S. litigation, is leaving Wachtell, Lipton, Rosen & Katz to join Gibson, Dunn & Crutcher, marking a significant shift in the competitive landscape for top legal talent. The move, announced last week, also includes five other partners from Wachtell, notably undermining the firm’s Delaware corporate litigation practice, a key component of its business.

Savitt, known for his defense of Fortune 500 boards and expertise in disputes arising from mergers and acquisitions (M&A) and shareholder activism, has been a central figure at Wachtell for over 25 years. His reputation was bolstered by high-profile victories against Elon Musk in federal court, cases that enhanced his and Wachtell’s prominence in Delaware, the legal hub for many U.S. corporations. His work extended beyond litigation, advising Delaware Governor Matt Meyer on efforts to curb corporate relocations to other states such as Texas, where Gibson Dunn notably assisted ExxonMobil in switching its incorporation.

Gibson Dunn, a global megafirm with approximately 2,200 lawyers and close to $5 billion in annual revenue, has been intensifying efforts to attract elite litigators amid a fierce talent market. The firm, which has a smaller M&A advisory practice compared to Wachtell, expects the addition of Savitt and his team to deepen its litigation bench, especially in complex corporate governance issues. Gibson Dunn also counts Musk among its clients, raising questions internally about potential conflicts, though the firm has downplayed concerns, emphasizing ample work for both new and existing attorneys.

This departure is particularly notable given Wachtell’s longstanding culture of lawyer retention and unique compensation system, which pays lawyers based on seniority rather than billings or individual performance—a model that has largely disappeared in other elite firms. Recent internal shifts at Wachtell toward favoring dealmakers over litigators reportedly contributed to tensions within the litigation group, prompting Savitt and his colleagues to seek new opportunities.

Among those joining Gibson Dunn alongside Savitt are three partners who specialize in Delaware law and two lateral partners previously recruited by him, Sarah Eddy and Randall Jackson. Another Wachtell partner, Nathaniel Cullerton, was expected to join the group but was placed on leave following an internal investigation after a widely circulated video showed him kissing a junior associate; he was not named as a Gibson Dunn recruit.

Wachtell’s leadership, including co-leader Andy Nussbaum and firm co-founder Marty Lipton, has sought to reassure staff regarding the firm’s resilience and future plans. Despite the setbacks, Wachtell retains a small but high-profile litigation team, handling matters such as a corruption inquiry involving the National Basketball Association. However, the loss of Savitt and his Delaware-focused practice partners significantly diminishes the firm’s standing in that specialized field.

While Delaware legal adviser Leo Strine, recruited by Savitt in 2020, is expected to remain at Wachtell, the firm faces the challenge of repositioning its litigation capabilities moving forward. Industry observers note that Savitt’s return to a competing firm after a quarter-century marks a rare and potentially enduring transition, underscoring the increasingly aggressive competition among elite U.S. law firms for top litigation talent.