Skadden made a deal with Trump. Associates on the inside say they're worried it's the beginning of the end for the firm.
Jonathan Ernst/Reuters.
- Skadden is the latest Big Law firm to strike a deal with Trump to avoid punitive executive action.
- The firm said it would provide $100M in pro bono legal work to causes supported by the administration.
- One Skadden associate said they find the firm's dealings with Trump "unforgivable."
Another Big Law domino has fallen at President Donald Trump's feet.
Skadden, Arps, Slate, Meagher & Flom LLP agreed to provide $100 million in pro bono legal services "to causes that the President and Skadden both support," Trump announced from the White House on Friday afternoon.
The firm also affirmed its commitment to merit-based hiring and employee retention, Trump said. In a copy of the agreement that Trump shared on Truth Social, Skadden agreed that it would not "engage in illegal DEI discrimination."
In recent weeks, the president has targeted major law firms that have worked for and with his political opponents by revoking their security clearances and calling for a review of their government contracts. He also authorized Attorney General Pam Bondi and Homeland Security Secretary Kristi Noem to sanction law firms that file lawsuits they deem "frivolous" to this administration. In response, some Big Law firms have chosen to fight back in court, while others — like Skadden — have chosen to make deals with the president to avoid punitive executive actions.
In a statement, Jeremy London, Skadden's Executive Partner, said the firm "engaged proactively" with the Trump administration to reach the agreement.
"The Firm looks forward to continuing our productive relationship with President Trump and his Admin," London said. "We firmly believe that this outcome is in the best interests of our clients, our people, and our Firm."
Trump described the deal with Skadden as "essentially a settlement."
"We appreciate Skadden coming to the table," Trump said.
One current Skadden employee told Business Insider that they felt the deal betrayed the firm's values and represented an "unforgivable affront" to the firm's culture. They spoke with BI anonymously to speak freely about the situation, as did another who echoed their concerns but did not wish to be quoted. BI has verified their identities.
"In addition to arguably being the best law firm in the country, many associates, including myself, joined the firm because its culture aligned with our values marginally more than other top law firms. That culture, and its emphasis on equity and inclusion, goes back to the firm's origins," the employee said, referencing the fact that founding partners' Jewish and Catholic backgrounds barred them from holding top-level positions in the legal industry in 1948 when the firm was formed.
The employee added: "There is a general consensus among associates who are politically engaged, that a deal reached with the Trump administration will mark the beginning of the end for Skadden."
"Partners and associates are considering leaving, much of the firm is demoralized, and we will struggle to recruit the best talent for years to come," the Skadden employee said.
Rachel Cohen, a now-former firm employee, publicly resigned from Skadden last week after she said the firm had not responded properly to Trump's threats against other firms, including Paul Weiss and Perkins Coie. She circulated an open letter among associates at other top firms who called for their employers to take stronger action in response to the administration's orders targeting Big Law.
Skadden is the latest firm to reach an agreement with Trump amid his administration's challenges to the industry. Some lawyers and legal scholars previously told Business Insider that these targeted attacks on Big Law by the government are "unprecedented" and threaten not just the legal field but also the rule of law itself.
Paul Weiss, which was named as one of the firms Trump was eyeing for executive countermeasures, ultimately brokered a deal with the administration. Trump rescinded his order against the firm in exchange for Paul Weiss' agreement to eliminate DEI considerations from its hiring practices and the firm's pledge of $40 million in pro bono legal services to initiatives endorsed by the Trump administration.
Business Insider previously reported the language in Paul Weiss' copy of the agreement did not include references to DEI that were in Trump's announcement.
Other firms targeted by Trump, such as Perkins Coie, the Elias Law Group, Jenner & Block, and WilmerHale have signaled that they will not back down and plan to fight executive orders in court. Perkins Coie and Jenner & Block have so far seen some success after the firm filed suit to challenge the order against it.
Jenner & Block was granted a temporary restraining order on Friday, blocking the Trump administration from punishing the firm. The New York Times reported that US District Judge John Bates, who is overseeing the case, described the order against the firm as "disturbing."
US District Judge Beryl Howell on March 12 partially blocked Trump's order against Perkins Coie. Politico reported that during an emergency hearing, the judge said that the "retaliatory animus" of Trump's order against the firm was "clear on its face" and "runs head-on into the wall of First Amendment protections."
On March 21, the Justice Department filed a motion to disqualify Howell from overseeing the lawsuit, arguing the judge is "insufficiently impartial" to rule on the case.