Microsoft swaps law firms in shareholder case, hiring Trump target

Microsoft is switching the law firm representing it in a shareholder case, changing one which settled with the Trump administration to keep away from a punishing govt order with one that’s combating the White Home. Courtroom paperwork confirmed Microsoft has employed Jenner & Block to exchange Simpson Thacher in a Delaware Chancery Court lawsuit over its $69 billion buy of Activision Blizzard. The filings didn’t give a purpose.

Microsoft, with out elaborating, mentioned in an announcement to Reuters that Simpson Thacher continues to characterize it on different issues. Corporations can have many causes for switching authorized groups, together with to economize or keep away from attorney-client conflicts.

Simpson Thacher didn’t instantly reply to a request for remark. Jenner & Block, which has finished prior work for Microsoft, declined to remark. Jenner and three different companies are suing President Donald Trump’s administration over his govt orders that stripped their safety clearances, restricted their entry to authorities buildings and sought to cancel federal contracts held by their shoppers.

Wall Road agency Simpson Thacher is amongst 9 companies which have collectively pledged practically $1 billion in free authorized providers to the White Home since Trump launched his stress marketing campaign on companies that he accused of “weaponizing” the authorized system in opposition to him.

The New York Instances first reported Microsoft’s change in counsel.

Jenner’s lawsuit in opposition to the Trump administration known as the manager order an “unconstitutional abuse of energy” that sought to drive away its shoppers. It mentioned the order was retribution for its previous employment of a prosecutor concerned within the U.S. particular counsel probe into Russian contacts with Trump’s 2016 presidential marketing campaign.

A former prime lawyer at Microsoft and dozens of different present and former basic counsels at main U.S. firms mentioned in an April 11 courtroom temporary backing Jenner and different companies that Trump’s orders drive firms “to decide on counsel to keep away from the President’s retribution slightly than primarily based on impartial enterprise judgment, expertise, ability, or experience.”

Simpson Thacher represented Microsoft in its acquisition of Activision Blizzard, maker of the favored online game “Name of Obligation.” The deal, introduced in 2022, was the biggest ever within the gaming industry.

The lawsuit in Delaware claimed Activision improperly authorised a draft merger agreement and never the ultimate model. Microsoft in 2024 requested a choose to validate the acquisition and deny a $15 million payment request from attorneys who represented an Activision shareholder.