Fortune 500's Dump AmLaw's that Bent the Knee to Trump

In a twist worthy of courtroom cinema, the biggest drama in Big Law this year isn’t about mergers or mega-trials. It’s about moral compromise—and the market backlash that followed.

As of mid-2025, a growing list of blue-chip corporate clients—think Morgan Stanley, Oracle, Microsoft, McDonald’s, and others—have taken their legal business elsewhere. Not because of performance, pricing, or partner politics. But because their outside counsel caved to pressure from a political regime they find toxic.

This isn’t theoretical. This is fallout from a real-world crisis in courage.

The Executive Order That Split the Legal World in Two

Earlier this year, the Trump administration issued a series of executive orders targeting law firms it deemed "uncooperative"—translation: firms that had represented political adversaries, participated in investigations, or simply declined to pledge fealty. These orders revoked security clearances, barred access to federal contracts, and set their sights on DEI programs.

Some firms—Paul Weiss, Skadden Arps, Milbank, Willkie Farr & Gallagher, and others, bent the knee and happily dismantled their DEI programs and pledged hundreds of million in pro bono work to MAGA causes. Other firms, Like K&E and Latham did the same without having any threat lodged toward them. Moves that defined how they viewed DEI all along. In doing so, they dodged the White House hammer… but walked straight into some corporate karma.

The Client Exodus

According to reports from Newsweek, The Daily Beast, and The Wall Street Journal, clients didn’t take this lying down.

• Morgan Stanley: Scaled back relationships with firms that signed on.

• Oracle: Quietly reassigned litigation and regulatory work.

• Microsoft: Temporarily dropped Latham & Watkins due to conflict concerns.

• McDonald’s: Moved compliance and regulatory matters.

• An unnamed airline and pharmaceutical giant: Following suit, quietly and swiftly.

The message was clear: Law firms willing to kneel for political convenience or abandon DEI without any coercion at all, aren’t trustworthy advisors—they're liabilities.

Principles, Profits, and the Fallout

These clients weren’t just reacting to bad press. They were reacting to a perceived betrayal of professional independence. Corporations hire law firms not just for their legal acumen—but for their spine.

And the firms that took the harder road? They’re reaping the rewards. WilmerHale, Jenner & Block, Perkins Coie, and Susman Godfrey didn’t just resist the pressure—they sued back. Their phone lines? Blowing up. Their new client files? Growing fat.

As one GC told Business Insider: “If my lawyers are afraid to stand up to politics, why would I trust them to stand up to regulators, judges, or activist investors?”

The Real Cost of Capitulation

These aren’t trivial losses. Losing one anchor client can decimate a practice group. Losing five or six? That’s a slow-bleed firm-wide crisis. And for the firms that chose expedience over ethics, the reputational damage is still metastasizing.

Internal tensions are flaring. Several partners at firms like Paul Weiss and Milbank have resigned or been assisted in finding firms with a moral compass by people like yours truly. They are unwilling to be associated with what they now see as institutional cowardice or underlying racism and misogyny. Associates are leaking concerns to reporters. Recruiting is suddenly harder.

Meanwhile, firms that resisted are onboarding top lateral talent at record pace—luring away disillusioned rainmakers with promises of moral clarity and client demand.

Beyond the Headlines: What This Means for the Legal Market

This saga has laid bare a truth many managing partners would rather avoid: today's corporate clients expect values alignment with their outside counsel. And in 2025, rule-of-law isn’t a partisan value—it’s a professional standard.

In the age of agentic AI, predictive litigation, and global compliance regimes, clients aren’t just hiring legal tacticians. They’re hiring institutional partners. And those partners must be seen as principled, independent, and capable of operating under pressure.

You can’t LARP as a civil rights advocate on LinkedIn while quietly cutting pro bono deals with a regime that revokes security clearances and guts DEI programs. Clients are watching. And they’re voting with their invoices.

Final Thoughts: The Real Reckoning Has Just Begun

This isn’t just a PR hit. It’s a professional reckoning. And the damage isn't evenly distributed. Firms that stood tall have emerged as moral leaders and market winners. Those that folded? They're learning that in law—as in life—there’s no such thing as a risk-free compromise.

So to the firms still sitting on the fence: the market has spoken. Grow a spine. Or watch your clients—and your credibility—walk out the door.