Paul, Weiss, one of the nation’s largest white shoe law firms, found itself in the middle of a political fire storm. This issue became a flash point following an executive order issued by former President Donald Trump. The order, which effectively suspended Paul, Weiss's lawyers from holding security clearances and terminated its federal government contracts, posed a significant threat to the firm's operations. In return, Paul, Weiss orchestrated a detailed plan, mixing public positioning with back-channel discussions with Trump and his team. As smartly noted by Streetsblog earlier this week, this was a pretty big deal. The order represents another significant victory for Trump’s campaign against major law firms.
The executive order issued by Trump not only stripped Paul, Weiss's lawyers of their security clearances but barred the firm's employees from entering federal government buildings on national security grounds. Paul, Weiss’s leadership, confronted by these obstacles, gathered to discuss how best to react. Winning the legal battle — trumped up as the fight for democracy — was one course of action proposed. The firm even discussed bringing William Burck on board to defend them in a prospective lawsuit.
In the end, Paul, Weiss chose to go a separate route. The creative firm decided to take the fight literally to Trump and his senior staff. Their goal was to come to an amicable solution via discussion rather than through a suit. Earlier in the week, Paul, Weiss made a very public overture to Trump. This proposal, undoubtedly, was the result of deliberate intuition following a few tactically executed moves by the firm.
According to people with firsthand knowledge of the matter, Trump never issued any specific demands in conversations with Paul, Weiss. That shows no willingness for real, direct negotiation on explicit demands. He did agree to the deal but not without inserting his own surprise twist. The settlement became a historic new episode in Trump’s long-running war of vengeance on blue-chip law firms.
What was most surprising about the agreement was the remarkable terms of the deal. As part of the settlement, Paul, Weiss will spend $40 million on legal services pro bono. In other words, they will be defending initiatives that President Trump prioritizes during the next four years. The firm consented to an annual, independent audit of its employment practices. This audit isn’t about getting rid of any efforts that advance diversity, equity, and inclusion in recruitment.
The deal came together amid a series of high-stakes days marked by ebbs and flows. The result highlights the growing need for and impact of legal strategy woven with passionate political maneuvering in high-stakes scenarios. Paul, Weiss really did go to extraordinary lengths to insulate itself. They proved ready to make bold moves when the stakes got higher.