Will ‘major upheaval’ at Paul Weiss impact legal market?
Brad Karp attends the 2024 Paley Honors at Cipriani 42nd Street on June 13, 2024, in New York City. (Photo by Steven Ferdman/Getty Images)
The abrupt change in leadership at Paul, Weiss, Rifkind, Wharton & Garrison likely will lead to “profound ripples” in the legal profession, according to one market observer who has familiarity with management at the Am Law 100 law firm.
Several market observers spoke with Law.com after Brad Karp resigned from his longtime role as chairperson of Paul Weiss on Wednesday. The move came just days after the U.S. Department of Justice released emails that offered a deeper look into his relationship with disgraced multimillionaire financier Jeffrey Epstein.
Karp said at the time “recent reporting has created a distraction and has placed a focus on me that is not in the best interests of the firm.” It was also then announced that Scott Barshay, the previous head of Paul Weiss’ corporate department, would be the firm’s new chairperson.
Sabina Lippman, a firmwide managing partner at recruiting company CenterPeak, told Law.com that Barshay also has been a longtime leader in the firm and will continue to have a positive influence in his new role.
“He’s been the architect of many of the major deals and acquisitions, both in terms of his legal practice and acquisitions from a lateral hiring perspective and decisions like opening in Houston,” Lippman said. “I don’t think the firm can be in better hands.”
But other sources reportedly told Law.com that Barshay “has been a polarizing figure,” and some partners at Paul Weiss already have begun looking for jobs elsewhere.
“How many people are going to be really ultimately comfortable going through this major upheaval and can stand by new management?” according to one of those sources. “It’s a big question mark.”
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