It wasn't just another Tuesday in the legal world. On March 14, 2025, a 150-year-old pillar of the American legal establishment, Paul, Weiss, Rifkind, Wharton & Garrison, found itself staring down the barrel of a presidential executive order. President Donald Trump had just signed Executive Order 14237, titled "Addressing Risks From Paul Weiss." This wasn't some dry regulatory tweak. It was a scorched-earth strike. The order basically blacklisted the firm, suspending security clearances for its lawyers, barring them from federal buildings, and telling government agencies to reconsider any contracts with the firm’s clients. For a global powerhouse with $2.6 billion in revenue, this was an "existential crisis," as Chairman Brad Karp later put it.
The Paul Weiss deal with Trump that followed just six days later changed everything. It wasn't just a settlement; it was a surrender that sent a lightning bolt through every white-shoe firm in the country.
Why Trump Targeted Paul Weiss
You’ve gotta understand the history here to see why Trump was so heated. This wasn't random. Paul Weiss had become a symbol of what the administration called the "weaponization" of the legal system.
Specifically, the White House was looking at two names: Mark Pomerantz and Jeannie Rhee. Pomerantz was a former Paul Weiss partner who had jumped ship to the Manhattan District Attorney’s office to lead the investigation into Trump’s business records. He eventually wrote a book basically calling the former president a mob boss. Then you had Rhee, a current partner who worked on the Mueller investigation.
Trump’s executive order didn't mince words. It accused the firm of "undermining the judicial process" and "destruction of bedrock American principles." He also took aim at their Diversity, Equity, and Inclusion (DEI) programs, calling them discriminatory. Basically, Paul Weiss was the poster child for everything the second Trump administration wanted to dismantle in "Big Law."
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The Meeting That Changed Everything
When the order hit, the firm was bleeding. Clients were already jumping ship. One filing in a New Jersey case showed the firm had been fired by a major client just days after the order. Brad Karp—who, notably, had recently suffered a heart attack—knew he couldn't just sue his way out of this. Perkins Coie had tried that and got a temporary restraining order, but for Paul Weiss, the reputational damage was already a terminal illness.
So, Karp went to the White House.
On March 20, 2025, the Paul Weiss deal with Trump was struck. In exchange for the President rescinding the executive order, Paul Weiss agreed to a list of concessions that left most of the legal industry's jaws on the floor.
The Terms of the Deal
The details vary slightly depending on whether you read Trump’s Truth Social post or Karp’s internal memo, but the core remains the same:
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- $40 Million Pro Bono Commitment: The firm pledged to provide $40 million worth of free legal services over four years to support "administration goals." This includes work for veterans, the Task Force to Combat Antisemitism, and "fairness in the justice system."
- The DEI Death Knell: Paul Weiss agreed to ditch its DEI policies in favor of "merit-based" hiring and retention. They even agreed to an outside audit of their employment practices.
- Political Neutrality: The firm promised to represent clients across the "full spectrum of political viewpoints," effectively pledging not to turn away conservative causes.
- The Pomerantz "Wrongdoing": This is the messy part. Trump claimed Karp acknowledged the "wrongdoing" of Mark Pomerantz during their meeting. Karp’s version of the agreement didn't mention this, but the White House's official order revoking the sanctions (Executive Order 14244) specifically cited this acknowledgment.
The Fallout: "Caving" or Surviving?
The reaction was swift and, frankly, brutal. 141 Paul Weiss alumni signed a letter slamming the firm for a "craven surrender." Critics like George Conway called it the most disgraceful action by a major law firm in his lifetime.
But inside the firm? It was about survival. Karp told his staff that the order "could easily have destroyed our firm." He wasn't just worried about the government; he was worried about his competitors. According to internal emails, other Big Law firms weren't exactly showing solidarity. Instead, they were "aggressively soliciting" Paul Weiss clients the moment the blood was in the water.
What Most People Get Wrong
A lot of folks think this was just about $40 million. It wasn't. For a firm making billions, $10 million a year is a rounding error. The real "deal" was the precedent. By settling, Paul Weiss signaled that the President could use the power of the executive branch to bypass the courts and force private companies to change their internal culture.
It also highlighted a massive divide in the legal world. While Perkins Coie fought and won a temporary victory in court, Paul Weiss took the "business" route. They chose the certainty of a deal over the gamble of a years-long constitutional battle that could have left them a husk of a firm by the time it ended.
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The Ripple Effect Across Big Law
The Paul Weiss deal with Trump didn't happen in a vacuum. Shortly after, other firms like Skadden Arps, Latham & Watkins, and Kirkland & Ellis reportedly made their own "preemptive" deals. Altogether, nine firms committed nearly $1 billion in pro bono work to avoid being the next name on a "Addressing Risks" executive order.
This basically turned the Department of Justice into a gatekeeper for Big Law's pro bono hours. Instead of firms choosing to support voting rights or environmental causes, they are now funneling those millions into administration-approved initiatives.
Actionable Insights: What This Means for You
If you’re a business leader or a lawyer, the Paul Weiss deal with Trump is a blueprint for the "New Normal." It’s not just about what’s legal; it’s about what’s politically tenable.
- Audit Your DEI Now: If you have federal contracts, ensure your diversity programs are framed as "merit-based" and "opportunity-focused" to avoid being a target.
- Assess Political Risk: Paul Weiss’s mistake was being too closely associated with one side of the aisle. Large organizations now need to demonstrate "political neutrality" in their client lists and public stances.
- Prepare a Crisis Plan: If a "presidential action" hit your company tomorrow, would you fight in court for three years or settle in three days? Paul Weiss chose the latter because they hadn't built a defense for the former.
The legal landscape has shifted from a battle of precedents to a battle of leverage. Whether you think the firm "bent the knee" or "saved the ship," the reality is that the rules of engagement between the White House and corporate America have been rewritten.
Keep a close eye on the "audit" results coming out of Paul Weiss later this year. Those findings will likely become the standard for every other firm trying to stay on the administration’s good side. The era of the "politically active" law firm might be taking a very long, very expensive hiatus.