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News

Litigation & Arbitration

Nov. 17, 2025

Former acting U.S. attorney to lead new litigation unit at McNicholas & McNicholas

Joseph McNally's move to a contingency-fee practice is unusual for a senior leader from one of the nation's major U.S. attorney's offices. McNicholas & McNicholas is currently a key player in several high-stakes matters, including litigation over the Eaton Fire and the landmark $4 billion settlement for survivors of sexual abuse in Los Angeles County's juvenile detention and foster care systems.

Former acting U.S. attorney to lead new litigation unit at McNicholas & McNicholas
Joseph McNally

Former acting U.S. Attorney Joseph McNally has joined McNicholas & McNicholas LLP to lead the firm's new Emerging Litigation Department, bringing nearly two decades of trial and leadership experience from the Central District of California.

McNally will oversee plaintiff-side cases involving social media liability, data breaches, online exploitation, sex trafficking, and catastrophic injuries. His move from one of the nation's largest U.S. attorney's offices to a contingency-fee practice highlights the growing convergence between federal enforcement priorities and complex civil litigation.

"Joe joining McNicholas & McNicholas represents a pivotal moment for our firm and even the plaintiff's bar," Matthew McNicholas said in a statement. "It's rare for someone at Joe's level--a former leader of one of the most significant U.S. Attorney's Office in the country--to join a contingency-fee practice. His decision to bring his talents here speaks to our shared commitment to holding powerful institutions accountable and protecting the most vulnerable."

McNicholas & McNicholas is currently involved in major high-impact litigation, including representing victims of the January 2025 Eaton Fire in Altadena in a suit against Southern California Edison that alleges negligent vegetation management and power-line maintenance in an area the firm characterizes as highly vulnerable to wildfires. The firm also recently served as co-lead counsel in securing a historic $4 billion settlement with Los Angeles County on behalf of more than 7,000 survivors of systemic sexual abuse in the county's juvenile detention and foster care facilities.

A Fellow of the American College of Trial Lawyers, McNally previously supervised more than 250 attorneys, oversaw all federal criminal and civil matters in a district of more than 20 million people, and launched a Corporate Fraud Strike Force while expanding consumer-protection efforts. His work spanned major health-care kickback convictions, investment and telemarketing fraud cases, child-exploitation prosecutions, and racketeering convictions against violent criminal organizations.

"Joe's experience prosecuting complex federal cases and his deep understanding of constitutional principles make him uniquely qualified to lead our work in emerging tort litigation," Partner Patrick McNicholas said. "As technology companies continue to expand with insufficient safeguards, we're seeing real harm from children being exploited on social media platforms and vulnerable individuals defrauded to catastrophic injuries in unregulated facilities. Joe will help us bring accountability to these evolving areas of litigation."

McNally's notable matters include convictions of an orthopedic surgeon and 20 executives in a major kickback scheme; a federal law enforcement officer and spouse for money laundering and narcotics trafficking; a senior Mexican Mafia leader for racketeering; and an international laundering ring that moved $60 million through Los Angeles jewelry businesses. He received the DOJ Director's Award in 2016, has tried 15 cases and argued six times before the Ninth Circuit.

"I have spent my entire career advocating for victims and working to make our communities safer," McNally stated. "That commitment doesn't end with government service. I chose to work with McNicholas & McNicholas because of the integrity of its lawyers and their success in holding powerful entities accountable. I'm honored to join this firm and lead efforts to address some of the most pressing civil justice issues of our time."

McNally clerked for U.S. District Judge D. Lowell Jensen and is a graduate of Santa Clara University and UC Berkeley School of Law. He has taught advocacy at UC Irvine School of Law.

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Douglas Saunders Sr.

Law firm business and community news
douglas_saunders@dailyjournal.com

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