Paul Weiss Law Firm Secures Landmark Victory in Billion-Dollar Case—What It Means for the Legal Industry

New York—Prestigious Wall Street litigation shop Paul, Weiss, Rifkind, Wharton & Garrison LLP is reeling after four of its most recognizable courtroom heavyweights—Karen Dunn, Bill Isaacson, Jeannie Rhee and Jessica Phillips—announced they are cutting ties with the 1,000-lawyer firm to launch an independent boutique focused on high-stakes commercial and antitrust disputes. The exodus arrives barely two months after Paul Weiss struck a controversial agreement with President Donald Trump’s administration, pledging $40 million in free legal services for “mutually agreed-upon public-interest causes.” Critics inside and outside the firm say the memorandum jeopardizes Paul Weiss’s long-standing reputation for progressive causes and non-partisan advocacy, while supporters argue it guarantees unprecedented White House access for clients. Four other elite firms, including Jenner & Block and Perkins Coie, have already sued to block similar executive orders targeting their government-contracting work, and federal judges have begun striking those directives down. Dunn, the departing co-chair of litigation and a former Obama White House lawyer, will take with her marquee matters such as Google’s defense in the U.S. Justice Department’s digital-advertising monopoly trial. Rhee previously served on Robert Mueller’s special-counsel team, while Isaacson and Phillips joined Paul Weiss in 2020 after headline-grabbing verdicts at Boies Schiller Flexner. Together the quartet commands tens of millions of dollars in annual billings, according to industry recruiters, and their new yet-to-be-named shop is expected to debut this summer with offices in Washington, D.C., and New York. In an internal farewell message reviewed by multiple outlets, the partners wrote that they were “disappointed not to share the news personally” but felt compelled to create a platform “aligned with our values and our clients’ needs.” Firm chair Brad Karp thanked the group “for their many contributions” and said Paul Weiss remains “committed to being the destination for the most sophisticated litigation and deal work worldwide.” Why the departure matters • Client conflicts: Paul Weiss’s pledge to the Trump administration may limit its ability to sue federal agencies or officials, a constraint the breakaway team will avoid. • Talent ripple: Lateral-hiring consultants predict additional resignations as associates weigh cultural fit and client alignment. • Competitive landscape: The boutique’s lean structure could undercut traditional Big Law pricing on seven- and eight-figure cases, pressuring rivals to rethink fee models. What happens next • Transition talks: Under New York ethics rules, clients—not firms—decide who handles their matters. Major corporations including Alphabet, Amazon, and several Fortune 50 retailers are already evaluating whether to follow Dunn’s team, according to people familiar with the discussions. • Political spotlight: The departures intensify scrutiny of corporate law firms’ relationships with the 47th president as election-season litigation ramps up. • Succession questions: Paul Weiss must quickly elevate new leaders for its flagship antitrust and tech-litigation practices to reassure clients that service levels will not slip. Industry reaction “Paul Weiss has been the go-to for Democratic power players for decades,” said a D.C. legal recruiter. “When four of its most recognizable progressive litigators leave over a Trump deal, that sends shock waves throughout K Street.” Meanwhile, rival firms are quietly courting disaffected partners and associates. “Every time a giant stumbles, hungry competitors move in,” observed a managing partner at another Am Law 10 firm. SEO takeaway Key phrases such as “Paul Weiss law firm partners leave,” “Karen Dunn new law firm,” “Trump pro bono deal,” and “Big Law departures 2025” are already registering spikes in search volume, suggesting sustained public interest in how politics is reshaping the elite legal market. Firms that navigate the cross-currents of client loyalty, reputation management, and Washington influence will define the next chapter of America’s $400 billion legal services industry.