WASHINGTON, March 20 (Reuters) - U.S. President Donald

Trump said on Thursday he is withdrawing an executive order that

targeted law firm Paul Weiss, saying the firm "acknowledged the

wrongdoing" of an attorney who investigated the president and

has pledged $40 million in free legal work to support the

administration.

The surprise move, which comes amid a wave of attacks by the

Republican president on prominent law firms, follows a meeting

between the president and Paul Weiss' chairman, Brad Karp,

according to the White House.

During that meeting, Karp acknowledged the wrongdoing of

Mark Pomerantz, a former partner at the New York firm, who was

involved in the Manhattan district attorney's investigation into

Trump's hush money payments to a porn star, the White House

said.

"Paul, Weiss agrees that the bedrock principle of American

Justice is that it must be fair and nonpartisan for all," said

Trump.

Pomerantz, who worked most recently at Paul Weiss until

2022, said in statement: "I engaged in no wrongdoing by working

as a prosecutor to uphold the rule of law."

Paul Weiss did not immediately respond to a request for

comment.

Trump's

executive order

against Paul Weiss suspended its lawyers' security

clearances and restricted their access to government buildings

and officials, citing the firm's diversity policies and its

association with Pomerantz.

Trump said Thursday that Paul Weiss promised to dedicate the

equivalent of $40 million in pro bono legal work during the

president's term toward administration priorities such as

combating antisemitism and support for veterans.

The firm also agreed to agreed to audit its employment

practices and purge them of any diversity, equity and inclusion

(DEI) policies, the White House said.

Trump has mounted a broad campaign against DEI practices

in government and the private sector that the administration

alleges are discriminatory. On Monday the U.S. Equal Employment

Opportunity Commission

sent demands

to 20 major law firms for detailed information about their

diversity initiatives and racial and gender demographics.

The apparent truce between Trump and Paul Weiss is in stark

contrast with the response of another firm, Perkins Coie, that

sued the administration after it was hit with a similar

executive order this month.

A judge in Washington temporarily blocked parts of the

Perkins Coie order on March 12, finding the firm was likely to

win its lawsuit alleging Trump's actions violated the firm's

rights under the U.S. Constitution.

Perkins Coie did not immediately respond to a request

for comment on Trump's decision to rescind the Paul Weiss order.

Paul Weiss' chairman Karp

helped raise funds

for Trump's 2024 election opponent Kamala Harris. The

firm's partners include Loretta Lynch, who was U.S. attorney

general during the Democratic Obama administration.

The firm is known for guiding corporate deals on behalf

of financial giants like Apollo Global Management ( APO ),

Blackstone Group, Citibank and Goldman Sachs ( GS )

, and for handling high-stakes litigation for tech

industry clients such as Alphabet's Google and

Amazon.com ( AMZN ).

The companies either declined to comment did not

immediately respond to requests for comment.