The Reed Smith law firm said it will cut salaries for all U.S. associates by 10 percent across the board, effective July 1.

In an internal memo that was originally leaked to the Web site Abovethelaw.com Wednesday afternoon, managing partner Gregory Jordan said the firm had already adopted changes to its business plan because of the recession, changing client demands, and the competitive landscape in the legal industry. Among other things, Jordan said it has meant lower compensation levels for partners, though he did not specify by how much.

A spokeswoman for the Pittsburgh-based firm, which has about 280 employees in Philadelphia, confirmed the authenticity of the memo.

Jordan said the firm will set the salaries for the incoming class of first-year associates in the United States at a later date, but they will be at least 10 percent lower than the current levels. Jordan said the firm will freeze associates’ salaries in its European and Middle Eastern offices, and will set the starting salary for newly qualified associates in the United Kingdom about 10 percent lower than the current level. Asian operations are not affected by the action.

Herzfeld & Rubin P.C. is relocating its headquarters to 125 Broad St. in New York's Financial District, after a 50-year stint at 40 Wall St.

Mack-Cali, which owns roughly 40 percent of the 40-story office tower, signed the global law firm to a 20-year, 56,322-square-foot lease. The new deal brings the REIT's 525,000-square-foot portion of the 1.3 million-square-foot high-rise to full occupancy. Mark Shapses, Joseph Messina and Jason Schwartzenberg with Studley represented Herzfeld & Rubin.

The law firm joins prominent tenants such as Sullivan & Cromwell LLP and the American Civil Liberties Union (ACLU), both of which own their space. Herzfeld & Rubin's 64,736-square-foot lease at 40 Wall St., which encompasses floors 50 through 56, is up at the end of this year. The new space offers comparable size, but on less than two floors.

The new deal brings a nearly four-year search to an end. "We were hired in 2005 to find a more cost-effective, efficient occupancy solution for the firm, and periodically went out into the market looking for space," said Shapses. "The market went through extraordinary price and availability changes in that period. The right situation with the right economics hadn’t surfaced until now."

Schwartzenberg noted that the space hadn't even hit the market yet. "We knew it would soon be vacated so we moved quickly to secure it."

Mack-Cali will cover 100 percent of the modifications Herzfeld & Rubin requires. The concession package also includes free rent and furnishings.

A jury found the longtime Republican lawmaker guilty in October on seven counts of lying on financial disclosure forms about gifts, including renovations that doubled the size of his home in Girdwood, Alaska. A judge dismissed the case in April, saying prosecutors withheld evidence that might have been favorable to Stevens at trial.

The disclosures filed this week are the same type of annual reports used against Stevens in his corruption case. The forms, which cover 2008, show that Stevens also owes $50,000 to $100,000 to another Washington law firm, Utrecht and Phillips.

Lawyer Ulrich Busch told The Associated Press late Thursday he is asking for the German government to retract its agreement to take Demjanjuk on humanitarian grounds.

He says it might take two weeks for the appeal filed with a Berlin administrative court to be ruled upon. And he says even if the ruling is in Demjanjuk's favor, American authorities still could deport him.

Demjanjuk (dem-YAHN'-yuk) is wanted in Germany on an arrest warrant accusing him of being an accessory to 29,000 murders at the Nazis' Sobibor death camp in occupied Poland. He denies the charges.