U.S. President Donald Trump, who had hinted at 'political retaliation' during the presidential campaign, has issued a series of executive orders aimed at suspending contracts with the federal government for law firms that employed prosecutors who investigated him or demonstrated a pro-Democrat affiliation. As a result, competing law firms are moving to recruit capable attorneys from the targeted firm. A notable example is the New York law firm 'Paul Weiss.'
On the 26th (local time), The New York Times (NYT) reported that multiple attorneys from the renowned law firms Sullivan & Cromwell, Kirkland & Ellis, Lipton, and Rosen & Katz said, "After Trump issued an executive order against Paul Weiss on the 14th, he called an attorney from Paul Weiss, who was facing a crisis, to ask if they would be willing to leave with profitable clients."
Earlier, on the 14th, Trump signed an executive order to revoke the federal security clearances of attorneys at Paul Weiss. He also ordered measures to terminate contracts between Paul Weiss and the federal government. This was Trump’s third executive order targeting large law firms, in which he pointed out that the firm played a significant role in "undermining judicial procedures and destroying American principles." He referenced the fact that Paul Weiss provided pro bono representation in a lawsuit filed by the District of Columbia Attorney General's Office against individuals who attacked the U.S. Congress on Jan. 6, 2021. Mark Pomerantz, a former prosecutor who investigated Trump's 'hush money' case in the Manhattan District Attorney's Office, works at Paul Weiss. Additionally, they held fundraising events for the Democrats during last year’s presidential election. Among other things, they were one of the law firms that provided legal support for families separated at the U.S.-Mexico border during Trump’s first term.
However, Trump rescinded the executive order issued against Paul Weiss on the 20th. This resulted from negotiations where Paul Weiss chose to meet with Trump's aides instead of legally challenging the executive order. The Wall Street Journal (WSJ) reported on the 21st that "Democratic supporter Brad Karp visited the White House on the 19th to negotiate with Trump’s aides," adding, "Ultimately, the White House rescinded the executive order, and in exchange, Paul Weiss agreed to provide $40 million (approximately 58.648 billion won) in pro bono legal services to support the Trump administration's policies, such as veteran assistance and combating anti-Semitism." The White House stated on the 20th that Karp acknowledged "the need to restore the U.S. judicial system," and Karp said, "We anticipate an active and constructive relationship with Trump and the Trump administration."
Paul Weiss's actions contrast sharply with those of the law firm 'Perkins Coie,' which received a similar executive order from Trump. Perkins Coie decided to legally address the constitutionality of the executive order. They lost several major clients shortly after filing a lawsuit. Most analysts believe this is why Paul Weiss chose to negotiate rather than sue the Trump administration. The WSJ noted that "Paul Weiss, which had an adversarial relationship with Trump during his first term, surrendering to him reflects concerns that the entire law firm industry could face financial ruin due to Trump's threats." The NYT cited four sources from Paul Weiss stating, "Some partner attorneys expressed concern that after managing partner Scott Barshay left, other attorneys would follow him, fearing being branded as 'Trump's opponent' even if they succeeded in court against Trump."
According to the NYT, Karp sent an email to staff on the 23rd stating, "Competitors are trying to exploit our vulnerabilities by aggressively attracting our clients and recruiting attorneys." The NYT also mentioned, "Large law firms fiercely compete for talent and regularly recruit top attorneys to strengthen operations and attract clients who can pay higher fees."
Meanwhile, Paul Weiss has major financial firms such as Goldman Sachs, Citigroup, Blackstone, and Apollo Global Management as clients. It has over 2,000 employees worldwide and reported an operating profit of $2.6 billion (approximately 3.8121 trillion won) last year.