Last year, law firms chose to buckle down and manage their expenses instead of expanding their businesses with mergers and acquisitions, according to recently released data.

In 2009 there were 53 new law firm mergers and acquisitions in the U.S. That was down 24 percent over 2008’s total, according to a report from legal research firm Altman Weil MergerLine.

About 79 percent of 2009’s deals involved the acquisition of small law firms with 20 or fewer lawyers, per the report.

“This reflects law firms’ cautious approach last year, as most firms spent 2009 focused on internal issues of cost cutting, layoffs, and compensation adjustments in response to the Great Recession,” said Altman Weil principal Ward Bower, in a statement. “But we expect to see an uptick in 2010 as deals currently on hold pending 2009 year-end results are finalized.”

One of the big exceptions to that, which was cited in the report, involved Boston-based Bingham McCutchen, which acquired McKee Nelson, a 120-attorney firm, in August. Another big deal saw K&L Gates, which has a large presence in Boston, acquire Bell Boyd and Lloyd in January.

The biggest deal, per the report, was the merger of the U.K.’s Lovells LLP with Washington, D.C.-based Hogan & Hartson. When that deal is ultimately finalized in May of 2010, it will be the second largest law firm merger ever accomplished, forming a 2,500-lawyer firm, according to Altman Weil.

Al Sanchez was convicted at the high profile trial based on testimony from a key witness whose arrest record and gang affiliations should have been disclosed beforehand to defense attorneys but were not, Judge Robert W. Gettleman said.

FBI agents based in Indiana also should have told prosecutors in Chicago that the witness, Brian Gabriel, was under investigation in a gang war between the Spanish Vice Lords and Latin Kings at the time of the trial, Gettleman said.

And the prosecutors could have learned of that investigation if they had performed a records search, Gettleman said in his 22-page opinion.

"Based on these findings, this court has lost confidence in the integrity of the verdict convicting these defendants," Gettleman said in his 22-page opinion.

Gettleman also ordered a new trial for a youthful former aide to Sanchez, Aaron Delvalle, who was convicted of one count of perjury at the March trial.

The trial attracted the spotlight because as streets and sanitation commissioner Sanchez headed a department that for decades was a major pool of patronage jobs for the once mighty Chicago Democratic Machine. That spotlight was intensified because in recent years the U.S. attorney's office has conducted a major investigation of hiring fraud at City Hall.

NORWALK, Conn. — Xerox Corp. said Monday that a pension fund hasdropped a lawsuit over provisions in the copier company's purchase ofAffiliated Computer Services Inc. that would have made it tough for abetter buyout offer to succeed.

Xerox said the plaintiffs, Cityof St. Clair Shores Police and Fire Retirement System in Michigan,ended the litigation after the copier company agreed to removeroadblocks to a superior offer for ACS.

Xerox agreed that if theACS board receives a better offer to its $5.6 billion cash-and-stockbid for ACS, the copier company will not require ACS Chairman DarwinDeason to vote his shares in favor of Xerox.

The previousagreement would have forced Deason to give half of his votes to supportthe Xerox bid. He controls a 44 percent of the votes at ACS.

Xerox also won't force ACS to hold a shareholders meeting to vote on the Xerox bid but instead end the merger if requested.

The lawsuit was filed in October in Dallas County, Texas. A separate shareholder class action lawsuit is pending in Delaware.

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