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Jenner & Block replacing Simpson Thacher in Activision
case
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Simpson Thacher represents Microsoft ( MSFT ) on other matters
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Jenner, other firms suing White House over orders
(Recasts headline in May 1 item)
By Mike Scarcella and Tom Hals
May 1 (Reuters) -
Microsoft ( MSFT ) is switching the law firm representing it
in a shareholder case, replacing one that settled with the Trump
administration to avoid a punishing executive order with one
that is fighting the White House.
Court documents showed Microsoft ( MSFT ) has hired Jenner & Block to
replace Simpson Thacher in a Delaware Chancery Court lawsuit
over its $69 billion purchase of Activision Blizzard. The
filings did not give a reason.
Microsoft ( MSFT ), without elaborating, said in a statement to
Reuters that Simpson Thacher continues to represent it on other
matters. Companies can have many reasons for switching legal
teams, including to save money or avoid attorney-client
conflicts.
Simpson Thacher did not immediately respond to a request for
comment. Jenner & Block, which has done prior work for
Microsoft ( MSFT ), declined to comment.
Jenner and three other firms are suing President Donald
Trump's administration over his executive orders that stripped
their security clearances, restricted their access to government
buildings and sought to cancel federal contracts held by their
clients.
Wall Street firm Simpson Thacher is among nine firms that
have collectively pledged nearly $1 billion in free legal
services to the White House since Trump launched his pressure
campaign on firms that he accused of "weaponizing" the legal
system against him.
The New York Times first reported Microsoft's ( MSFT ) change in
counsel.
Jenner's lawsuit against the Trump administration called the
executive order an "unconstitutional abuse of power" that sought
to drive away its clients.
It said the order was retribution for its past employment of
a prosecutor involved in the U.S. special counsel probe into
Russian contacts with Trump's 2016 presidential campaign.
A former top lawyer at Microsoft ( MSFT ) and dozens of other current
and former general counsels at major U.S. companies said in an
April 11 court brief backing Jenner and other firms that Trump's
orders force companies "to choose counsel to avoid the
President's retribution rather than based on independent
business judgment, experience, skill, or expertise."
Simpson Thacher represented Microsoft ( MSFT ) in its acquisition of
Activision Blizzard, maker of the popular video game "Call of
Duty." The deal, announced in 2022, was the largest ever in the
gaming industry.
The lawsuit in Delaware claimed Activision improperly
approved a draft merger agreement and not the final version.
Microsoft ( MSFT ) in 2024 asked a judge to validate the acquisition and
deny a $15 million fee request from lawyers who represented an
Activision shareholder.