The head of the elite New York law firm that cut a highly criticized deal with President Trump last week asserted on Sunday that he made the agreement because the firm was unlikely to survive a protracted legal fight with the Trump administration.
Brad Karp, the managing partner of the firm, Paul, Weiss said in an email to its lawyers that it was initially prepared to fight an executive order Mr. Trump had signed that essentially crippled the firm’s ability to represent clients.
But the firm’s clients were deeply concerned that even if Paul, Weiss won in court, it would still be labeled “persona non grata with the administration,” Mr. Karp said. He said that would potentially prompt clients to move their businesses to rival firms and cause Paul, Weiss to go under.
The firm, formally called Paul, Weiss, Rifkind, Wharton & Garrison LLP, has offices around the world. Its work involves mergers and acquisitions, private equity, white-collar and regulatory defense and litigation. Its clients have included corporations like ExxonMobil, Citigroup, Imagine Entertainment and Lucasfilm.
Some members of Mr. Karp’s firm — particularly litigators — had pushed to fight the order in court, arguing that a judge would quickly block Mr. Trump’s executive order. But members of the corporate practice — who account for a significant part of the firm’s revenue — insisted that Mr. Karp reach a deal to prevent clients from fleeing.
Mr. Karp said in the email that even if a judge did block Mr. Trump’s executive order, the firm’s clients would be too scared of being perceived as being on the wrong side of the Trump administration to continue working with Paul, Weiss.