No Result
View All Result
  • Login
Tuesday, June 17, 2025
theadvisertimes.com
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
No Result
View All Result
theadvisertimes.com
No Result
View All Result
Home Economy

Big Law Deals With Trump Are Backfiring on Top Firms

by theadvisertimes.com
1 month ago
in Economy
Reading Time: 5 mins read
A A
0
Big Law Deals With Trump Are Backfiring on Top Firms
Share on FacebookShare on TwitterShare on LInkedIn


Yves here. It’s delicious that major white shoe law firms are experiencing tangible bad outcomes for capitulating to Trump demands, such as doing pro bono work for pet conservative causes (and not any left wing ones), like defending cops and dropping DEI initiatives, such as the exodus of key partners and top associates and even firings by big name clients. It will be harder to fulfill those pro bono commitments at a smaller staff and revenue level. As this post documents, that’s not a full list of the blowback.

By Steven J. Harper, an attorney, adjunct professor at Northwestern University Law School, and author of several books, including Crossing Hoffa — A Teamster’s Story and The Lawyer Bubble — A Profession in Crisis. He has been a regular columnist for Moyers on Democracy, Dan Rather’s News and Guts, and The American Lawyer. Follow him at https://thelawyerbubble.com. Originally published at Common Dreams

The president’s bullying was always about intimidation and deterrence. Here’s the sound it makes when not one, but many, other shoes begin to drop.

The Big Law firms that capitulated to President Donald Trump’s unconstitutional demands thought they were buying peace with his administration, preserving their client relationships, and protecting their bottom lines.

Recent developments illustrate the growing magnitude of their mistake.

Fighters Are Winning

On May 2, U.S. District Court Judge Beryl Howell became the first court to issue a final ruling that Trump’s executive orders targeting Big Law firms violated the First, Fifth, and Sixth Amendments to the U.S. Constitution. In a 102-page opinion, the court shredded Trump’s edict with a straightforward analysis that other courts are likely to follow:

“In a cringe-worthy twist on the theatrical phrase ‘Let’s kill all the lawyers,’ [Trump’s Executive Order] takes the approach of “Let’s kill the lawyers I don’t like,” sending the clear message: lawyers must stick to the party line, or else.

“Using the powers of the federal government to target lawyers for their representation of clients and avowed progressive employment policies in an overt attempt to suppress and punish certain viewpoints, however, is contrary to the Constitution,…. Simply put, government officials ‘cannot . . . use the power of the State to punish or suppress disfavored expression.’

“That, however, is exactly what is happening here.”

For those keeping score, Trump’s Justice Department has now lost every courtroom fight on the subject. Jenner & Block, WilmerHale, and Susman Godfrey obtained immediate temporary relief from his executive orders, as did Perkins Coie, which has now won a permanent injunction from Judge Howell.

Meanwhile, how are the firms that caved to Trump doing?

The Other Shoe Drops: #1

After providing Trump with a war chest totaling almost $1 billion in free legal services, the settling firms are now learning how he plans to use it. Previously, Trump had mused about using Big Law attorneys on coal leasing and tariff deals, but on April 28 things got real.

Trump issued an executive order titled, “STRENGTHENING AND UNLEASHING AMERICA’S LAW ENFORCEMENT TO PURSUE CRIMINALS AND PROTECT INNOCENT CITIZENS.”

The order emphasized the need to “protect and defend law enforcement officers wrongly accused and abused by State or local officials.” It directed Attorney General Pam Bondi to provide the legal resources necessary to defend those officers, including “private-sector pro bono assistance.” [emphasis supplied]

Stated simply, police officers accused of brutality and other misconduct will get Big Law attorneys to defend them – free of charge.

Meanwhile, traditional pro bono causes, including defending immigrants’ rights, are suffering from the deterrent effect of Trump’s attack. Fearing his wrath, they are declining work that challenges his policies.

Settling firms were already getting blowback from their partners and associates as many have left their firms. Trump’s newly-added page to their pro bono catalog won’t help recruiting or retention. And as with all things Trump, there’s no limiting principle. Appeasement never produces finality.

The Other Shoe Drops: #2

The firms’ stated reason for capitulating to Trump was concern that clients would leave any firm that was not in Trump’s good graces. That premise is not aging well either.

On April 11, Simpson, Thacher & Bartlett agreed to provide $125 million in pro bono work “and other free legal services” to Trump-designated causes.

On April 22, the firm informed the Delaware Chancery Court that it would no longer be representing Microsoft in a case related to its 2023 acquisition of Activision. The same day, Jenner & Block replaced Simpson Thacher as Microsoft’s counsel.

Losing a client to another firm is not uncommon, and none of the players has commented on Microsoft’s switch. But capitulation to Trump has not been a panacea for preserving client relationships. A firm that challenges an unconstitutional order threatening its existence is a firm that many clients want fighting for them.

The Other Shoe Drops: #3

On April 24, 16 House members sent letters to nine firms that settled with Trump. Asking about their motivations and urging them to disavow the deals, lawmakers suggested that the agreements may violate federal and state criminal and civil laws while creating “potentially irresolvable violations of applicable Rules of Professional Conduct.” Previously, Sen. Richard Blumenthal (D-Conn.) and Rep. Jamie Raskin (D-Md.) sent requests for information from several firms and White House counsel on April 6 and April 18.

The Other Show Drops: #4

Firms assumed that capitulation would occupy a single news cycle and then disappear. But their public relations nightmares aren’t going away. Apart from the widespread and ongoing condemnation of the legal community, the story continues to have legs as a fateful moment for the rule of law in the United States.

The May 4 edition of CBS’s 60 Minutes ran a damning segment on Big Law firms that settled with Trump. None was willing to appear and defend itself or its deal. The legal term for such continuing cowardice is res ipsa loquitur – the thing speaks for itself. In this case, the firms didn’t speak at all.

On May 9, an article that later appeared in the New York Times Sunday print edition ran with this headline and subhead:

Can Elite Lawyers Be Persuaded to ‘Wake Up and Stand Up’? When the law firm Paul Weiss cut a deal with the Trump administration, a new kind of activist emerged.

Some of the settling firms, including Kirkland & Ellis and at least one other, have an escape hatch: Their “handshake deals” with Trump are not in writing. They can do what Trump does when he no longer likes his own prior agreement: Walk away.

In fact, even firms with a written agreement can walk away too. Whatever their form, the deals are probably notenforceable. But that was never Trump’s main objective. It was always about intimidation and deterrence. When firms bent the knee to him, he won and scored an invaluable public relations victory.

And his accompanying billion-dollar windfall didn’t hurt.



Source link

Tags: BackfiringbigDealsfirmsLawTopTrump
ShareTweetShare
Previous Post

Deere & Company (DE) Q2 2025 earnings fall on lower revenues

Next Post

JPMorgan Chase CEO Jamie Dimon says recession is still on the table for U.S.

Related Posts

Ending Subsidies to Amtrak Will Benefit Rail Travelers

Ending Subsidies to Amtrak Will Benefit Rail Travelers

by theadvisertimes.com
June 17, 2025
0

Remember the glamorous days of train travel? Like the 20th Century Limited connecting New York and Chicago? In 1928, the...

Laith Marouf on Iran’s Escalatory Path and Its Expectations of a Long War

Laith Marouf on Iran’s Escalatory Path and Its Expectations of a Long War

by theadvisertimes.com
June 17, 2025
0

Yves here. Your humble blogger is typically sparing about featuring YouTube interviews as posts. However, this Rachel Bevin interview with...

The New Axis Of Authoritarianism

The New Axis Of Authoritarianism

by theadvisertimes.com
June 17, 2025
0

President Trump is leading the way on peace through strength, and I’m with him 100%. If diplomacy fails, the U.S....

RFK Jr. Conducted a Pointless Vaccine Purge

RFK Jr. Conducted a Pointless Vaccine Purge

by theadvisertimes.com
June 16, 2025
0

The Wall Street Journal ran a letter co-authored by Charley Hooper and me today (print version tomorrow.) I have hesitated to...

2025 New York Mayoral Primary, Mamdani Vs. Cuomo

2025 New York Mayoral Primary, Mamdani Vs. Cuomo

by theadvisertimes.com
June 16, 2025
0

This is a news round up of the 2025 New York Mayoral Primary. The race seems to be narrowing to...

Does the “Economy” Actually Exist?

Does the “Economy” Actually Exist?

by theadvisertimes.com
June 16, 2025
0

On a regular basis various “experts” in the field of economics make comments on the state of the “economy.” For...

Next Post
JPMorgan Chase CEO Jamie Dimon says recession is still on the table for U.S.

JPMorgan Chase CEO Jamie Dimon says recession is still on the table for U.S.

Alphabet: Diese Hürde müssen die Bullen überwinden!

Alphabet: Diese Hürde müssen die Bullen überwinden!

  • Trending
  • Comments
  • Latest
Sir Jack A Lot returns with a startup for retail traders

Sir Jack A Lot returns with a startup for retail traders

June 22, 2024
Finnish medtech AIATELLA raises €2M: Co-founder Jack Parker on using AI for preventative cardiovascular screening and easing radiologist burnout

Finnish medtech AIATELLA raises €2M: Co-founder Jack Parker on using AI for preventative cardiovascular screening and easing radiologist burnout

June 4, 2025
As Harvard’s and Yale’s private equity holdings go on sale, buyers can use this technique for 1,000% windfalls. ‘It makes your brain melt’

As Harvard’s and Yale’s private equity holdings go on sale, buyers can use this technique for 1,000% windfalls. ‘It makes your brain melt’

June 15, 2025
7 Payouts You Can Still Get From Old Lawsuits and Settlements

7 Payouts You Can Still Get From Old Lawsuits and Settlements

June 1, 2025
15 Highest Yielding Utility Stocks | Dividend Yields Up To 6.6%

15 Highest Yielding Utility Stocks | Dividend Yields Up To 6.6%

June 11, 2025
Costco Membership Promotion: Free  Gift Card with Membership Purchase +  in Fetch Rewards!

Costco Membership Promotion: Free $50 Gift Card with Membership Purchase + $10 in Fetch Rewards!

June 7, 2025
Stocks sink amid instability in the Middle East, Fed decision

Stocks sink amid instability in the Middle East, Fed decision

0
5 Steps to Apply for Social Security (and When to Do It)

5 Steps to Apply for Social Security (and When to Do It)

0
The 10 Highest Yielding Dividend Champions | Yields Up To 7.2%

The 10 Highest Yielding Dividend Champions | Yields Up To 7.2%

0
Episode 213. “We have a M trust

Episode 213. “We have a $1M trust

0
Sonol warns on fuel supply disruptions

Sonol warns on fuel supply disruptions

0
Ending Subsidies to Amtrak Will Benefit Rail Travelers

Ending Subsidies to Amtrak Will Benefit Rail Travelers

0
Stocks sink amid instability in the Middle East, Fed decision

Stocks sink amid instability in the Middle East, Fed decision

June 17, 2025
5 Steps to Apply for Social Security (and When to Do It)

5 Steps to Apply for Social Security (and When to Do It)

June 17, 2025
How switching broker-dealers led to a tech rethink: Show Me Your Stack

How switching broker-dealers led to a tech rethink: Show Me Your Stack

June 17, 2025
Unlock scaling growth at TC All Stage, and get 0 off for 6 more days

Unlock scaling growth at TC All Stage, and get $210 off for 6 more days

June 17, 2025
G7 leaders try to salvage their summit after Trump’s early exit effectively makes it the ‘G6’

G7 leaders try to salvage their summit after Trump’s early exit effectively makes it the ‘G6’

June 17, 2025
Ending Subsidies to Amtrak Will Benefit Rail Travelers

Ending Subsidies to Amtrak Will Benefit Rail Travelers

June 17, 2025
theadvisertimes.com

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Economy
  • Financial Planning
  • Investing
  • Market Analysis
  • Markets
  • Money
  • Personal Finance
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Stocks sink amid instability in the Middle East, Fed decision
  • 5 Steps to Apply for Social Security (and When to Do It)
  • How switching broker-dealers led to a tech rethink: Show Me Your Stack
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • About Us
  • Contact Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.