On The Merits Trump's War on Law Firms Puts In-House Counsel in Tough Spot
May 13, 2025
Brian Baxter, a Bloomberg Law reporter specializing in the legal industry, and Sara Kropf, a partner at Kropf Moseley Schmitt focused on legal ethics, delve into the turbulence facing law firms under the Trump administration. They discuss how outside counsel relationships are strained as general counsels weigh the reputational risks of working with politically controversial firms. The conversation highlights the complexities of changing legal partners and the ethical dilemmas GCs face, emphasizing the critical balance between client interests and personal beliefs.
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Trump Targets Law Firms Aggressively
- The Trump administration targeted at least 20 big law firms by suspending security clearances and threatening contracts.
- Some firms sued the government while others made deals involving pro bono initiatives to lift penalties.
Microsoft's Counsel Shift Sends Message
- Microsoft symbolically replaced Simpson Thatcher with Jenner and Block in a Delaware case to signal disapproval of Trump.
- Simpson Thatcher continues representing Microsoft in other matters, showing nuanced client-law firm relationships.
Changing Law Firms Is Complex
- Long-standing law firm relationships make switching outside counsel costly and difficult for companies.
- Many companies cautiously delay changes, observing how settlement terms with Trump play out before deciding.