Trump’s Revenge Backfires: Top Law Firms Lose Billions as McDonald’s, Oracle, and Morgan Stanley Walk Away
Big companies like Oracle, McDonald’s, and Morgan Stanley have started cutting ties with top law firms that gave in to demands from President Donald Trump. According to a report by The Wall Street Journal, these law firms are now facing serious consequences for trying to please Trump.
Since beginning his second term, President Trump has signed several executive orders targeting well-known law firms. These include firms that represented Democrats like Hillary Clinton, refused to support Trump or his allies, or even hired lawyers who once investigated him. Trump punished them by taking away their government contracts, blocking their lawyers from entering federal buildings, stripping them of important security clearances, and pushing them to get rid of diversity and inclusion policies. He even hinted at launching more legal investigations against them.
Some law firms, like Paul Weiss, Latham & Watkins, and Skadden Arps, quickly gave in. They agreed to Trump’s demands and even offered free legal services worth hundreds of millions of dollars, hoping to avoid more problems. But now they are facing a new kind of backlash — their major clients are walking away.
On the other hand, a few law firms refused to cooperate with Trump. Firms like WilmerHale, Jenner & Block, Perkins Coie, and Susman Godfrey pushed back and went to court to protect their rights. So far, they’re winning. Judges have ruled that Trump’s actions are unconstitutional, with courts blocking or striking down the orders against these firms.
Now, standing up to Trump seems to be helping them. The Journal reports that at least eleven major companies are moving their legal business to these law firms that stayed independent. McDonald’s, Morgan Stanley, and Oracle are among the big names making this shift. Some of the companies spoke openly, while others shared their reasons through insiders and legal sources.
Executives said they couldn’t trust law firms that were so quick to fold under pressure. For example, Morgan Stanley’s top legal officer, Eric Grossman, met with Latham & Watkins after they gave in to Trump. Although he listened to their explanation, he later reached out to law firms that had not signed any deals with Trump and offered them new business instead.
McDonald’s decision to remove top lawyer Loretta Lynch, who works with Paul Weiss, was especially shocking because it came so close to an important trial. Lynch, who once served as Attorney General under President Obama, was defending McDonald’s in a case accusing the company of racial discrimination in advertising.
The Wall Street Journal also revealed that the law firms who settled with Trump are facing chaos inside their offices. While their leaders thought they were buying peace, they instead sparked arguments between partners and caused some young lawyers to quit, even though these jobs usually pay very well.
So far, the blowback seems to be working. Since early April, Trump hasn’t issued any new orders targeting law firms. It appears the resistance is forcing him to back off — at least for now.
