Business
Law Firms Jenner & Block and WilmerHale Sue Trump Administration to Block Executive Orders
The nation’s legal profession is being split between those that want to fight back against President Trump’s attacks on the industry and those that prefer to engage in the art of the deal.
Two big firms sued the Trump administration on Friday, seeking to stop executive orders that could impair their ability to represent clients. The lawsuits filed by Jenner & Block and WilmerHale highlight how some elite firms are willing to fight Mr. Trump’s campaign targeting those he doesn’t like, while others, like Paul Weiss and Skadden, have cut deals to appease the president.
In recent weeks, Mr. Trump has issued similarly styled executive orders against firms that he perceives as enemies and threats to national security. The orders could create an existential crisis for firms because they would strip lawyers of security clearances, bar them from entering federal buildings and discourage federal officials from interacting with the firms.
“I am heartened by the fact that Jenner and Wilmer are joining Perkins in pushing back on these illegal executive orders. It shows that capitulation is not the only route,” said Matthew Diller, a law professor and former dean of Fordham University School of Law. “In the long run, it will strengthen their reputations in the market as forceful advocates who stand up for principle, a quality that many clients will value.”
Jenner & Block said in a statement that its suit was intended to “stop an unconstitutional executive order that has already been declared unlawful by a federal court.” A third firm, Perkins Coie, has also sued the Trump administration over the same matter, and had some early success in stopping the executive order.
Jenner & Block also created a website — Jenner Stands Firm — to publicize its filing and to highlight newspaper editorials criticizing the executive orders and comments from law school professors questioning the legality of Mr. Trump’s actions.
On Friday evening, Judge John Bates of Federal District Court in Washington issued a temporary restraining order that bars the Trump administration from punishing Jenner & Block. The judge called the portion of the executive order that criticizes the pro bono legal work the firm does for organizations “disturbing” and “troubling.”
Later Friday, another federal judge in Washington, Richard Leon, issued a temporary restraining order granting WilmerHale most of the relief the firm sought from the executive order against it.
The effort to fight back in a public manner stands in contrast with the way other firms have handled Mr. Trump’s campaign against them.
Also on Friday, Mr. Trump told reporters that the White House had reached a deal with Skadden, Arps, Slate, Meagher & Flom that would require the firm to provide $100 million in pro bono legal services to causes he supports. Skadden and Mr. Trump reached a deal after the law firm had reached out behind the scenes to head off the filing of an executive order against it.
“We very much appreciate their coming to the table,” Mr. Trump said.
In a statement, Skadden said, “We engaged proactively with the president and his team in working together constructively to reach this agreement.” The firm added that the agreement “is in the best interests of our clients, our people and our firm.”
Last week, Paul, Weiss, Rifkind, Wharton & Garrison announced an agreement in which Mr. Trump rescinded his executive order against the law firm in exchange for its committing to represent clients regardless of their political leanings and pledging $40 million in pro bono legal services to issues Mr. Trump has championed.
Paul Weiss reached its deal within days of Mr. Trump’s executive order after the firm’s chairman, Brad Karp, flew from New York for an Oval Office meeting with the president and some of his staff. Mr. Karp said in an email to the firm that he had moved quickly because Paul Weiss’s big corporate clients were threatened with the “loss of their government contracts and the loss of access to the government” if they stuck with the firm.
Mr. Karp cast the deal as a move to save Paul Weiss, which employs about 2,000 people. He also complained that other law firms had not come out to support Paul Weiss.
But that deal was widely criticized. The firm — which is stocked with Democrats who have opposed Mr. Trump — was seen as bending to the president to protect its bottom line.
“A large part of this are business decisions being made by law firms,” said Rebecca Roiphe, a former prosecutor and a professor at New York Law School who specializes in legal ethics. “These firms are calculating that their clients will feel aligned with their decisions.”
Mr. Trump has been going after big law firms that he contends have “weaponized” the legal system. He is initially targeting law firms that hired lawyers who were once involved in the many investigations of his actions during his first presidential term and his business dealings.
The executive orders have been premised on Mr. Trump’s notion that the law firms’ partisan representations and pro bono work for groups that he disagrees with could pose a threat to national security.
A White House spokesman, Harrison Fields, said in a statement: “Democrats and their law firms weaponized the legal process to try to punish and jail their political opponents. The president’s executive orders are lawful directives to ensure that the president’s agenda is implemented and that law firms comply with the law.”
The suit by Jenner & Block was filed in federal court in Washington, and the firm is asking a judge to step in immediately and stop the executive order, which was leveled against it by Mr. Trump this week. The firm is being represented by Cooley, another law firm. The lawsuit named numerous government agencies and officials as defendants.
WilmerHale filed its lawsuit in the same federal court and is being represented by Paul Clement, a solicitor general during the administration of President George W. Bush.
Jenner & Block and WilmerHale represent some of the nation’s biggest companies, and often deal with regulatory issues before government agencies. Jenner & Block has represented the defense contractor General Dynamics, as well as the entertainment giant Viacom, while one of WilmerHale’s major clients is JPMorgan Chase.
The executive order accused the firm of engaging “in obvious partisan representations to achieve political ends” and claimed the firm “discriminates against its employees based on race and other categories prohibited by civil rights laws, including through the use of race-based ‘targets.’”
The executive orders against both Jenner & Block and WilmerHale focused, in large part, on the work of lawyers with the federal investigation into ties between Mr. Trump’s 2016 presidential campaign and Russia. The investigation was led by a special counsel, Robert S. Mueller III, a former director of the F.B.I. who was a partner at WilmerHale.
One of Mr. Mueller’s top assistants on that investigation was Andrew Weissmann, a longtime federal prosecutor and former partner at Jenner & Block.
Both Mr. Mueller and Mr. Weissmann rejoined their firms after the investigation was completed. The lawyers left their firms in 2021. But on the WilmerHale website, there is a page devoted to a lengthy interview with Mr. Mueller, who is normally media-averse, in which he discusses his “remarkable life and career.”
Jenner & Block’s complaint said Mr. Trump’s action was unconstitutional and would compromise the ability of the firm’s more than 500 lawyers to “zealously advocate for its clients.”
The lawsuit noted that Mr. Trump’s deal with Paul Weiss did not include any new security measures imposed on that firm.
In a statement, WilmerHale, which has about 1,000 lawyers, said the president’s executive order “is a plainly unlawful attack on the bedrock principles of our nation’s legal system — our clients’ right to counsel and the First Amendment.”
Perkins Coie, one of the first law firms targeted by Mr. Trump, sued him earlier this month. A federal judge temporarily halted Mr. Trump’s order, saying it was likely illegal and adding: “It sends little chills down my spine.”
Vanita Gupta, a civil rights lawyer and former senior Justice Department official in the Biden and Obama administrations, said the new lawsuits were necessary in a time of peril for the legal profession.
“The only way through this attack on the very foundations of our legal system is by fighting back,” Ms. Gupta said. “If firms want to be trusted to fight the biggest fights, they must not cave to blatantly unconstitutional government actions.”
She praised the three firms that are fighting the administration and said she hoped others would do the same because “collective action is the only way to pull through in this moment.”
Mr. Trump’s executive order against Paul Weiss was motivated in part by the fact that a former partner at that firm has worked with the Manhattan district attorney’s office in trying to build a criminal case against Mr. Trump after he lost the 2020 election.
One pattern of the executive orders is going after law firms that have employed attorneys whom Mr. Trump’s sees as his personal enemies. One of those is Mr. Weissmann, whom Mr. Trump has often lashed out against on his social media platform, Truth Social.
Mr. Weissmann has a reputation as an aggressive investigator. In recent years, he has emerged as a public critic of Mr. Trump, appearing frequently on MSNBC to provide legal analysis about the range of indictments Mr. Trump faced for his conduct.
In the complaint, the firm said Mr. Weissmann had not worked for it since 2021. It also noted that it has had prominent lawyers from all political parties on its staff.
Tyler Pager contributed reporting.
In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.
The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.
Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.
Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.
Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.
(Varda Space Industries)
Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.
Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.
Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.
Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.
It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.
Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.
For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.
The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.
“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.
As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.
Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.
Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.
Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.
In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.
“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.
Ships near the Strait of Hormuz before and after attacks began
Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.
On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.
“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”
Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.
International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.
A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.
Where ships and energy facilities have been damaged
A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.
The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.
Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.
On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.
In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.
Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.
The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.
The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.
Where tankers moving through the Strait have traveled
In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.
Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.
Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.
Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:
Call it the deal-debt hangover.
Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.
Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.
S&P Global Ratings took similar action.
To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.
“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.
Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.
Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.
Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.
Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.
Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.
Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.
(Evan Agostini / Invision / AP)
Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.
Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.
Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.
Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.
Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.
During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.
Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”
It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.
Workers are scattered throughout the region.
HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.
“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”
David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.
Ellison has not announced what the combined company will be called.
Paramount shares closed down more than 6% Tuesday to $12.45.
Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.
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