Keep your finger on the legal world's pulse

Democratic lawmakers have warned top law firms, including Paul Weiss, Skadden and Kirkland & Ellis, that deals they have reached with U.S. President Donald Trump to avoid being targeted by punitive executive orders may violate federal and state laws.  The legislators have sent letters to nine firms, advising them that their agreements to support Trump’s preferred causes with pro bono work and to not pursue diversity policies in recruitment may contravene U.S. statutes that outlaw racketeering, bribery, extortion and other misconduct. Other recipients of the letters include A&O Shearman, Milbank, Willkie Farr & Gallagher, Latham & Watkins, Simpson Thacher, and Cadwalader, Wickersham & Taft.

 

ABC News

Financial Times

Law

A federal judge has issued a preliminary injunction preventing the Trump administration from dismantling federally funded news outlet Voice of America (VOA). Judge Royce C. Lamberth criticized the administration's actions as "arbitrary and capricious," saying there was a lack of "reasoned analysis." He emphasized that the administration was "likely in direct violation of numerous federal laws." The ruling reinstates the status of VOA employees and contractors who were suspended following a March 14 executive order. Patsy Widakuswara, VOA's White House Bureau Chief, expressed gratitude for the ruling, highlighting its importance for national security, and saying: "Every day that VOA is not broadcasting is a day we cede the global information space and allow adversaries to fill it with disinformation and anti-American propaganda." The injunction does not extend to other broadcasters like Radio Free Europe/Radio Liberty, which are facing their own legal challenges.

 

NPR / National Public Radio

The Trump Organization is to fire legal adviser William Burck after President Trump criticized his representation of Harvard, which is suing the administration over a funding freeze, alleging violation of constitutional rights. The move came soon after Trump criticized the lawyer, William Burck, co-managing partner of litigation firm Quinn Emanuel, on social media. “Harvard is a threat to Democracy, with a lawyer, who represents me, who should therefore be forced to resign, immediately, or be fired,” the president wrote in the Truth Social post. “ . . . I hope that my very big and beautiful company, now run by my sons, gets rid of him ASAP!”

 

Wall Street Journal

Skadden Arps Slate Meagher & Flom faces allegations of violating federal labour law by restricting associates' access to internal email distribution lists. The alleged action reportedly hindered discussions of the firm's $100m deal with the Trump administration. The National Institute for Workers' Rights has filed an unfair labour practice charge against Skadden with the National Labor Relations Board, claiming the firm interfered with its associates' legal rights. The charge follows Skadden's commitment to provide $100m in pro bono services to the administration while also scaling back its diversity, equity, and inclusion initiatives.

 

Bloomberg Law

Baker Botts, Kirkland & Ellis, and Willkie, Farr & Gallagher have announced lateral partner hires to enhance their key practices in Texas. Baker Botts has welcomed Chris Thiele as an environmental partner; Kirkland added a corporate partner; while Willkie hired two private equity partners in Dallas. The hiring trend reflects the ongoing strength of Big Law in Texas, particularly within the energy sector, as firms continue to expand their capabilities.

 

Law

The American Bar Association (ABA) has filed a lawsuit against the U.S. Department of Justice (DOJ), alleging that the termination of $3.2m in federal grants was a retaliatory act for ABA criticism of the Trump administration. The ABA contends that the action violates the First Amendment and seeks a federal court's intervention to prevent the cancellation of funds that support training for lawyers representing victims of domestic and sexual violence. A memo from U.S. Deputy Attorney General Todd Blanche had barred DOJ attorneys from participating in ABA events. He described the organization as engaging in "activist causes." The ABA says it has lost nearly $69m in federal grants and had to lay off over 300 staff members.

 

U.S. News

Potato and fries company Lamb Weston is facing a class action lawsuit in Washington. The lawsuit, which alleges the company failed to provide required rest and meal breaks for its hourly workers, seeks at least $14.2m, including attorney fees, and claims that workers were denied paid 10-minute breaks for every four hours worked and 30-minute meal breaks, leading to unpaid overtime. Derrick Gilbert is the lead plaintiff, represented by Justice Law Corp. The lawsuit estimates lost wages at over $5.7m, with potential double damages bringing the total to nearly $11.4m. Lamb Weston has denied the allegations and argues the case should not be certified as a class action. The lawsuit was initially filed in Benton County Superior Court and has since moved to Eastern Washington U.S. District Court.

 

The Columbian

German sportswear group Adidas is being sued by former US employee April Burton, who claims she was unlawfully fired after complaining about racist and sexist comments made by senior directors.

 

Financial Times

The U.S. Department of Justice has rowed back on a plan to break up its Washington-based tax division and send prosecutors to attorneys' offices throughout the country, according to an internal email seen by Reuters. The plan had been criticized by numerous former tax officials. "If the goal is to increase efficiency and our return on investment, eliminating the Tax Division would be an epic failure," the officials wrote, observing that decentralizing the division would risk inconsistent application of tax law. A new plan would house tax attorneys within the DOJ's civil and criminal divisions, otherwise keeping intact the unit which specializes in enforcing the tax code. 

 

U.S. News

The Securities and Exchange Commission (SEC) has seen a significant reduction in its workforce, losing 16% of its staff since last year, primarily due to early retirement offers from the Trump administration. The decline has left critical divisions, such as Trading and Markets, with staffing losses of up to 20%. Joel Seligman, a professor at Washington University School of Law, warned that "cuts to the size of the staff . . . can lead to significant gaps in the performance of the SEC in preventing fraud." Jessica Wachter, who was the SEC's chief economist before she stepped down earlier this year, said: "If something breaks in the markets, it makes a difficult matter much worse . . . It's important to keep sufficient levels of staffing so that critical knowledge concerning these functions doesn't get lost."

 

U.S. News

Unilever is reportedly threatening to halt funding to the Ben & Jerry’s Foundation, a U.S.-based non-profit that makes donations to social justice organizations. Ben & Jerry's sued Unilever in November to stop alleged efforts to dismantle its board and end its progressive social activism, which has included protesting the war in Gaza, supporting a movement to defund police, and attempting to criticize U.S. President Donald Trump. Sources say Unilever is threatening to halt the funding in retaliation for the lawsuit, and because one of the ice cream maker's founders has tried to buy back the frozen dessert maker.

 

Reuters

Jennifer Taylor has joined Jackson Lewis as a principal in Miami, focusing on compliance, risk management, and employment law for both domestic and international operations. She also advises on labour and employment issues related to mergers and acquisitions, and represents clients in federal and state courts.

 

Bloomberg Law