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Wanted to get your opinion on whether leading law firms have nepotism while hiring or is it completely merit based, given that most of the law firms are family owned and managed.

Happy to hear from others without naming people. Not looking for specific instances, but all law firms as a whole.
There's always a little bit of nepotism going on at all levels of recruitment, but at the fresher level, the vast majority of hires tend to be merit based, even if an occasional client's relative slips in. Nepotism hires also crack very quickly and leave after their first or second diligence. Your father can get you through the door, but not through the diligence.
Minimum in securing internship, some of them taking subjective decision and further limiting their fair chances in narrowing ppo.Yet to see their open mindness and deep research in picking talents .It is happening, one is toiling hard for securing good rank in the class for 05 years ,( how difficult it is ? ,can be good indicators ,but someone lower in the Marit getting job before the former ,through the contact, what a rubbish.
Many hires in tier 1 firms are nepo kids. Typically from wealthy/influential families and studying in private law schools.
In my experience yes when it came to internships.

At the end of the day they need to make money, so they are not going to willingly hire dead weight unless you are the progeny of a big fish.
Yes, there are definitely nepo kids here and there and everywhere, either their dad is big bureaucrat or they are connected to somebody who is connected to somebody in the firm. In my experience, these nepo kids, since they have had it easy and (mostly)have a private school upbringing, are the worst to work with. They feel entitled and don't care a hoot about the money as they already have enough of it.
Very funny. As if all NLU graduates are 'meritorious' who end up in tier 1 firms. You think they haven't used alumni contacts? Isn't that nepotism?
It does exist just like in any other field but as pointed out above if they are not good, they will be shown door.

Considering majority of the law firms are family owned and operated, including Tier-1 law firms, not a surprise that nepotism does exists.

Overall at the junior level and freshers, majority of the cases are on merit but you will find 1-2 cases where someone related to a client or other big-wig is hired. That is understandable but Tier-1 law firms have balanced out and majorly hire on merit.
The world in itself is nepotistic. We (the ones who frequently visit this website) were born with privileges we did nothing to earn [as propounded by Robert Merton in his Cumulative Inequality theory]. It's only salty when the shoe is on the other foot.
Nepotism is prevalent throughout at Tier 1 firms from internships,to hiring, to uneven work distribution,to promotion etc because it's the family relatives are who are inheriting and running Tier1.