Like most law firms, K&L Gates LLP faces headwinds. The recession has cut demand for many corporate legal services, including work on mergers, real estate and corporate finance. In turn, profits at firms across the country have plummeted, forcing many of them to fire attorneys, freeze salaries and shut offices.

Peter Kalis, chairman of the 1,800-lawyer K&L firm, has felt the pain first hand. He cut costs sharply this year, including firing about 40 attorneys and 200 other staff members.

But the 59-year-old West Virginia native -- a Rhodes Scholar, Yale Law School graduate and clerk for Supreme Court Justice Byron White -- hasn't curtailed his expansion ambitions.

In the last two years, he has overseen mergers with firms in Chicago, North Carolina and Texas, and he has opened offices abroad, including in Singapore, Frankfurt and Dubai. His Pittsburgh law firm now ranks among the nation's largest, with 33 offices around the globe.

And Mr. Kalis shows no signs of slowing down. "Downturns can present extraordinary growth opportunities," he says. "But if you are lost in navel gazing and you don't have your head beams on high looking down the road, you'll miss the opportunities."

A lawyer for Zacarias Moussaoui has told a federal appeals court in Virginia that the Sept. 11 conspirator is entitled to a new trial.

Moussaoui is serving a life sentence after pleading guilty to helping plan the 2001 terrorist attacks. But his lawyer told a three-judge panel Friday that the plea was unconstitutional because his trial lawyers had to undergo a national security background check, which restricted Moussaoui's right to choose counsel.

Moussaoui also claims he was denied helpful evidence. A federal prosecutor said Moussaoui decided to plead guilty before that evidence could be provided.

The 4th U.S. Circuit Court of Appeals first heard Moussaoui's appeal in January but ordered new arguments when a panel member retired before the case could be decided.

A federal appeals court on Thursday tossed out a $5 million verdict against protesters who carried signs with inflammatory messages like "Thank God for dead soldiers" outside the Maryland funeral of a U.S. Marine killed in Iraq.

A three-judge panel of the 4th U.S. Circuit Court of Appeals said the signs contained "imaginative and hyperbolic rhetoric" protected by the First Amendment. Such messages are intended to spark debate and cannot be reasonably read as factual assertions about an individual, the court said.

A jury in Baltimore had awarded Albert Snyder damages for emotional distress and invasion of privacy. The 2006 funeral of Snyder's son, Marine Lance Cpl. Matthew Snyder in Westminster, Md., was among many military funerals that have been picketed by members of the fundamentalist Westboro Baptist Church in Kansas.

Albert Snyder's attorney, Sean E. Summers, said he and his client were disappointed.

Property rights advocates who fought to keep the city of New London from taking homes by eminent domain say the city's failure to develop the land is poetic justice. But city officials say the land's fate was victim of the bad economy.

Susette Kelo and six other homeowners fought for years to keep New London from taking their homes. The city won the right to buy the land in a 5-4 Supreme Court decision in 2005.

Officials hoped for more than 3,000 new jobs in the development. But today, there's only a state park and a handful of new jobs.

Former Israeli prime minister Ehud Olmert on Friday made his first court appearance on charges of graft, vowing he would prove his innocence.

As the first Israeli premier to face criminal charges in court, Olmert acknowledged at the arraignment hearing in Jerusalem that he understood the charges against him. He is not scheduled to enter a plea until later this year.

Olmert resigned under pressure last September but has insisted on his innocence and told journalists on Friday he was confident the trial would vindicate him.

"I am innocent, and I am certain the court will clear me of any suspicions," he said. "It is not an easy day for me; for the past three years I have been the target of an almost inhuman defamation campaign."

The court decided it will start hearing testimony on February 22 and will hold three sessions a week.

Olmert, who turns 64 on Wednesday, was charged in August with three counts of graft.

The CEO of National Lampoon Inc. has pleaded guilty to conspiracy.

Federal prosecutors in Philadelphia say CEO Daniel Laikin was part of a plot to artificially inflate the company's stock price by paying people to buy shares. The 47-year-old man, who lives in Indianapolis and Los Angeles, pleaded guilty to conspiracy Wednesday. Prosecutors dropped a count of securities fraud in exchange.

Prosecutors say Laikin and others hoped to push the price of the shares from $2 to $5 to boost its attractiveness in a strategic partnership or acquisition. The shares were trading on the American Stock Exchange at the time but prosecutors say they've since become an over-the-counter penny stock.

Defense lawyer Joseph Poluka did not immediately respond to a message seeking comment.