In the past week, a significant development in the Biglaw sector emerged as Microsoft made a notable shift in its legal representation. The technology giant decided to part ways with Simpson Thacher, a firm which had previously agreed to a controversial $125 million in pro bono support for various causes aligned with Donald Trump. Instead, Microsoft has opted for Jenner & Block, a firm known for its staunch opposition to Trump’s legal challenges. This shift indicates that when a law firm is publicly criticized for its decisions, particularly ones perceived as compromising legal integrity, it can significantly undermine their clients’ confidence in their ability to advocate effectively.
Moreover, Microsoft is not alone in reassessing its legal partnerships; several other corporations are also distancing themselves from firms that have shown signs of weakness in their legal stances.
As highlighted by reports from Law.com, numerous general counsels are reevaluating their relationships with firms that they perceive as excessively accommodating. One general counsel from an energy company remarked, “I have removed firms from consideration for upcoming projects. I previously collaborated with Skadden and Willkie, but their recent settlement actions prompted me to disengage. I am currently engaged in discussions with other general counsels who have also excluded these firms from their panels.” The energy GC elaborated, stating, “Over a dozen companies are actively seeking new legal representation and have recently overhauled their preferred panels, eliminating firms they would have typically considered.”
A similar sentiment was echoed by a technology general counsel.
“At the moment, my workload is quite limited; I’m only working with one firm, and that project is exceptionally sensitive. I’m not in a position to shift it right now, but I will explore alternatives when I can, and I categorically refuse to assign any new work to those firms that have shown weakness,” stated a general counsel specializing in technology, who requested anonymity to preserve client relationships.
Lawyers, whether in-house or at competing firms, are closely monitoring how different legal practices are reacting to the demands and pressures from Trump.
“There’s a significant amount of information being circulated,” the tech GC revealed, referring to spreadsheets that detail “which firms have succumbed to pressure, which have held their ground, and which partners are best to contact if one decides to apply pressure on the firm,” they added. “There was a surge of activism in the initial weeks following these developments.”
Microsoft’s public decision is also prompting other organizations to reconsider their own legal affiliations. As the tech GC pointed out, while it may be challenging to immediately transition all of one’s business away due to long-standing relationships, the visibility of Microsoft’s actions provides general counsels with substantial leverage. “This public example serves as critical evidence for those of us who are advocating for change within our organizations. It equips us with the necessary backing to approach executive teams and boards, making it clear that this is a significant issue, especially since even a major player like Microsoft is taking such measures.”
The sentiment resonates strongly: “Choosing to align with a firm that supports a regime that actively undermines the rule of law appears to be a misguided business decision. Associating with such practices can damage our own reputation and credibility in the industry,” remarked the energy general counsel.
Ultimately, it becomes evident that yielding to a bully is not only a moral misstep but also a detrimental business strategy.
Kathryn Rubino is a Senior Editor at Above the Law, the host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are invaluable, so please reach out with your insights. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or on Mastodon @Kathryn1@mastodon.social.
For ongoing updates in litigation, regulatory changes, business deals, and financial service trends, subscribe to Finance Docket, a collaborative effort between Breaking Media’s Above the Law and Dealbreaker.
