*

Trump strips Perkins Coie of security clearances, targets

contracts

*

Law firm has represented clients challenging Trump

*

Perkins Coie says it will challenge order

(Adds comment from Perkins Coie in paragraph 6, details from

executive order in paragraphs 1, 2, 9, 10, 11. Reworks bullets.)

By Trevor Hunnicutt and Mike Scarcella

WASHINGTON, March 6 (Reuters) - U.S. President Donald

Trump on Thursday signed an executive order suspending security

clearances for employees of law firm Perkins Coie and targeting

the firm's business with federal contractors, citing its

diversity practices and political activities.

Seattle-founded Perkins Coie has long drawn criticism

from Trump allies over its prior work for Trump's 2016

Democratic election opponent Hillary Clinton.

The order also directed federal officials to investigate

other "large, influential, or industry leading law firms" over

their compliance with laws against racial discrimination.

"This executive order will suspend security clearances

and access to certain federal resources for that law firm and

also launch a holistic review of unlawful DEI (diversity, equity

and inclusion) practices at some of the nation's largest law

firms," Trump aide Will Scharf said during an Oval Office

signing event with reporters.

Trump said it was "an absolute honor to sign" the order.

Perkins Coie in a statement said the executive order is

"patently unlawful, and we intend to challenge it."

Trump last week signed a similar order against another

prominent law firm, Covington & Burling.

In that order, security clearances were revoked for lawyers

who provided free assistance to Jack Smith, the former U.S.

special counsel who oversaw two criminal prosecutions against

Trump. The president also directed federal agencies to review

any contracts they have with Covington.

The executive order targeting Perkins Coie went further,

ordering agencies to require that federal contractors must

disclose any business with the firm and saying contracts related

to that business may be terminated.

The order also said Perkins Coie employees' ability to

access federal government buildings would be restricted to

protect U.S. interests and national security.

"Their disrespect for the bedrock principle of equality

represents good cause to conclude that they neither have access

to our Nation's secrets nor be deemed responsible stewards of

any Federal funds," the order said.

White House officials said federal agencies would

refrain from hiring Perkins Coie employees "unless specifically

authorized" and block business with contractors that work with

Perkins Coie because of the firm's involvement in "partisan

lawsuits against the United States."

Perkins Coie and Covington are among nearly a dozen

major U.S. law firms representing clients in lawsuits against

the Trump administration, challenging executive actions related

to immigration, transgender rights and other issues.

Perkins is involved in two lawsuits against the Trump

administration, including one in Seattle federal court that

challenges the White House's move to restrict transgender people

from serving in the military.

DIVERSITY INITIATIVES

A group headed by prominent anti-affirmative action activist

Edward Blum sued Perkins Coie in August 2023, alleging its

diversity fellowships unlawfully excluded certain people based

on their race.

Perkins Coie changed the criteria for its fellowship program

two months later and the suit was dropped.

Legal scholars said they were not aware of a U.S.

presidential administration ever taking such official actions

against specific law firms in the past.

Michael Frisch of Georgetown University's law school

said it is a foundation of the legal profession that "everyone

is entitled to a defense, and you don't judge a lawyer or law

firm by the client that it chooses to legitimately and lawfully

represent, and that's really under challenge right now."

University of Minnesota law professor Richard Painter,

who served as associate White House counsel from 2005 to 2007,

said he could see no direct connection between law firm

diversity initiatives and risks to national security that would

entail stripping a law firm's security clearances.

Perkins Coie is widely known for its legal work for tech

companies and other clients. It is defending Alphabet's

Google against a lawsuit by the Republican National

Committee accusing the tech giant of sending its emails to

users' spam filters. The firm has represented Amazon ( AMZN ) in

a number of court cases. The companies did not immediately

respond to requests for comment.

Its work for Hillary Clinton's campaign led to

criticisms from Trump supporters, including Elon Musk.