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Lawyer Who Criticized Trump Quits After Another Firm Bends the Knee

Lawyer Who Criticized Trump Quits After Another Firm Bends the Knee

  • 21.03.2025 17:18
  • newrepublic.com
  • Keywords: danger, danger

The text highlights Trump's influence over corporate legal decisions, Tesla's Cybertruck recall, and Musk's business challenges. It also covers Trump's military policies, the Education Department dismantling facing public opposition, and Musk's efforts to sway judiciary decisions through petitions and threats against leakers.

Tesla ServicesTSLAsentiment_dissatisfiedBA/PAsentiment_dissatisfied

Estimated market influence

Skadden, Arps, Slate, Meagher & Flom

Negativesentiment_dissatisfied
Analyst rating: N/A

Firm where Rachel Cohen worked and was critical of Paul Weiss's decision to comply with Trump's demands.

Paul Weiss

Negativesentiment_dissatisfied
Analyst rating: N/A

Law firm that agreed to provide $40 million in free legal services and stopped diversity initiatives after Trump's threats.

Perkins Coie

Positivesentiment_satisfied
Analyst rating: N/A

Law firm represented Hillary Clinton’s 2016 campaign, supported by Cohen's amicus brief request.

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Recalled nearly all Cybertrucks due to a defect; stock prices dropping; involved in DOGE purge and Twitter issues.

Boeing

Negativesentiment_dissatisfied
Analyst rating: —

Received contract for Trump's new fighter jet, F-47, but faced EU snub and ally hesitancy.

FBI

Neutralsentiment_neutral
Analyst rating: N/A

Redacting Jeffrey Epstein files under pressure; agents diverted from national security to focus on this task.

Wisconsin Supreme Court

Negativesentiment_dissatisfied
Analyst rating: N/A

Targeted by Musk's petition and financial influence, risking judicial independence.

U.S. Department of Education

Negativesentiment_dissatisfied
Analyst rating: N/A

Dismantled by Trump via executive order, facing public opposition.

Pentagon

Neutralsentiment_neutral
Analyst rating: N/A

Involved in Musk's briefing on China; denied NYT report but later corroborated.

Context

Business Insights and Market Implications Analysis

Legal Services Industry

  • Paul Weiss Decision: Paul Weiss agreed to stop diversity-based hiring and fired Marc Pomerantz after Trump revoked security clearances over $40 million in free legal services.
  • Skadden Arps Response: Rachel Cohen quit due to Paul Weiss' decision, highlighting the risk of losing talent if firms cave to political pressure.
  • Market Trend: Law firms face increased scrutiny over diversity and inclusion practices, with potential reputational risks for those aligning with Trump's demands.

Automotive Industry

  • Tesla Recall: Tesla recalled 46,000 Cybertrucks due to a faulty cant rail assembly, affecting all units produced from November 13, 2023, to February 27.
  • Stock Impact: Tesla's stock value dropped by half, exacerbated by Musk's Twitter controversies and an explosion incident in Las Vegas.

Military Contracts

  • F-47 Fighter Jet: Trump announced a new fighter jet, but his comments about toning down versions for allies raised concerns over U.S.-allied trust.
  • Sales Impact: Foreign sales are crucial for American arms manufacturers, but Trump's aggressive tone may deter potential buyers.

Judiciary and Politics

  • Judicial Influence: Musk paid $100 to Wisconsin residents to sign a petition against "activist judges," aiming to sway public opinion ahead of the Supreme Court election.
  • Political Dynamics: This move could influence decisions on key issues like abortion access and voting rights, with national repercussions.

Education Sector

  • Education Department Dismantling: Trump's executive order to close the Department of Education faced 65% public opposition, with 92% of Democrats opposing it.
  • Financial Impact: The department distributes $120.8 billion annually in grants and loans, affecting millions of students and educational institutions.

FBI Resource Allocation

  • Epstein Files Redaction: The FBI redirected resources to redact Jeffrey Epstein files, diverting focus from national security issues.
  • Transparency Concerns: This shift raises questions about the bureau's priorities and public perception of transparency.

Strategic Considerations

  • Corporate Reputation: Firms like Tesla and Paul Weiss face reputational risks due to product defects and political alignment.
  • Regulatory Risks: Trump's actions, such as targeting the Education Department, may disrupt long-standing policies and regulatory frameworks.

Long-Term Effects

  • Market Volatility: Tesla's recall and stock collapse indicate potential long-term challenges in maintaining consumer trust and market share.
  • Political Influence: Musk's efforts to influence judiciary decisions and public opinion could set precedents for corporate involvement in politics.

Competitive Dynamics

  • Industry Pressure: Law firms face pressure to maintain ethical standards while balancing business interests, risking talent loss if they don't align with progressive values.
  • Global Sales Uncertainty: American arms manufacturers may lose foreign sales due to Trump's unpredictable policies and aggressive tone.

Regulatory Impacts

  • Judicial Battles: The focus on "fraud" in federal spending could lead to changes in how funds are allocated and monitored, affecting various government programs.
  • Security Clearance Risks: Companies providing legal or defense services may face increased scrutiny and potential penalties for opposing Trump's policies.

Conclusion

These events underscore the intersection of politics, business, and market dynamics, with significant implications for corporate strategy, regulatory compliance, and public trust. Companies must navigate these challenges carefully to maintain profitability, reputation, and long-term viability.