Trump says Skadden, Arps law firm reached $100M settlement to avoid executive order

The law firm of Skadden, Arps, Slate, Meagher & Flom has reached a $100 million settlement with the White House to avert the types of penalties that President Trump has imposed on other law firms through executive order. 

He announced the settlement at the Oval Office swearing in of Alina Habba as the interim U.S. Attorney for New Jersey.

Under the deal, Skadden, Arps will provide $100 million in free legal services to causes that are important to Mr. Trump, including representing veterans, active military and law enforcement officials; set up a scholarship fund; and eliminate its diversity, equity and inclusion initiatives by committing to merit-based hiring, promotion and attention. Skadden will also agree to represent clients regardless of their political leaning.

“We appreciate Skadden coming to the table,” Mr. Trump said. “As you know, other law firms have likewise settled the case. What’s gone on is a shame. But we very much appreciate their coming to the table,” Mr. Trump said.

The settlement represents a development in Mr. Trump’s campaign against law firms that have represented or employed individuals who were involved in criminal investigations against him or filed lawsuits against his administration. The president says they weaponized the legal system. 

Skadden is the first law firm to strike a deal with Mr. Trump before he could issue an executive order. It shows that large law firms want to strike deals to avoid a protracted legal battle with the president.

Law firm Paul, Weiss, which has extensive ties to Democrats and anti-Trump causes, reached a settlement this month after Mr. Trump issued an executive order targeting it. Paul, Weiss agreed to represent clients no matter their political leaning and donate $40 million in free legal services.

Mr. Trump rescinded the order after the settlement. 

The leaders of Paul, Weiss told The New York Times that the order would have decimated their business and some of their top lawyers would have defected to other firms.

Mr. Trump’s orders have revoked the security clearances for attorneys at the firms, barred them from federal contracting and prohibited them from entering federal buildings. In addition to Paul, Weiss, WilmerHale, Perkins Coie, Covington & Burling and Jenner & Block have been targeted with executive orders. 

Jenner & Block filed a lawsuit on Friday arguing that the executive order is unconstitutional and Mr. Trump doesn’t have the authority to target a private business. 

Most of the law firms that Mr. Trump has targeted have employed high-profile Democrats or taken legal action to aid Democrats. However, it’s not clear why Skadden, Arps drew his attention. It’s possible it could involve a recent post by Trump adviser Elon Musk on X.

Mr. Musk singled out Skadden’s work in a lawsuit against conservative political commentator Dinesh D’Souza. The firm is representing a private citizen suing Mr. D’Souza, saying the conservative critic falsely accused him of ballot fraud in a documentary about the 2020 election.