Kate Leinbaugh
Appearances
The Journal.
Trump's Attack on Big Law
Trump is taking aim at some big law firms because of things that happened years ago, going all the way back to his first term.
The Journal.
Trump's Attack on Big Law
The first firm Trump went after provided some legal services around the investigation of Trump's role in the January 6th riot.
The Journal.
Trump's Attack on Big Law
Trump issued an executive order against Covington & Burling that suspended the firm's security clearances and placed its government contracts under review.
The Journal.
Trump's Attack on Big Law
Trump said his order was in response to quote, the weaponization of our system by law firms. Covington said it had a long history of representing clients facing government investigations that is quote, consistent with the best traditions of the legal profession. About a week later, Trump issued another executive order against another prominent firm, Perkins Coie.
The Journal.
Trump's Attack on Big Law
This executive order went further than the first one. It limited the firm's access to federal buildings.
The Journal.
Trump's Attack on Big Law
So what you're saying is, if their clients want to keep their federal contracts, they'd have to go to a different law firm. That seems like it would be a big deal for Perkins Coie.
The Journal.
Trump's Attack on Big Law
Perkins Coie decided to fight back. The firm said the order was a, quote, irrational abuse of power that shocks the conscience. The firm alleged the order was illegal in at least nine different ways, including violating a client's right to legal counsel.
The Journal.
Trump's Attack on Big Law
Just days later, Trump signed a third executive order that would take his fight against big law in a different direction. This order was against a major law firm called Paul Weiss.
The Journal.
Trump's Attack on Big Law
And like the other firms Trump has gone after, Paul Weiss has done some work for people and organizations that oppose Trump.
The Journal.
Trump's Attack on Big Law
President Donald Trump has signed an executive order targeting Chicago-based law firm Jenner & Block. These executive orders could have massive, detrimental consequences for some of the nation's biggest law firms. Here's our colleague Erin Mulvaney, who covers legal affairs.
The Journal.
Trump's Attack on Big Law
Did Trump say anything in particular about why he was taking aim at Paul Weiss?
The Journal.
Trump's Attack on Big Law
Earlier this month on Fox News, President Donald Trump announced a new plan.
The Journal.
Trump's Attack on Big Law
Pomerantz is someone who used to work at Paul Weiss. He was affiliated with the firm for about two decades. In 2021, Pomerantz worked at the Manhattan DA's office on an investigation that resulted in an indictment against the Trump Organization for alleged fraudulent business practices. The indictment eventually fell apart.
The Journal.
Trump's Attack on Big Law
Trump's executive action against Paul Weiss was basically identical to the one against Perkins Coie. And immediately, it started to impact Paul Weiss's business. Other big law firms started to approach Paul Weiss's clients, hoping to poach them. At least one client decided to drop the firm.
The Journal.
Trump's Attack on Big Law
After the break, what Paul Weiss did and why it was so surprising. Once Trump signed the executive order against Paul Weiss on Friday, March 14th, it set off a scramble.
The Journal.
Trump's Attack on Big Law
In the background, Brad Karp found a way to trump. He tapped a powerful acquaintance, Robert Kraft, the owner of the New England Patriots. Kraft connected Karp with the president, and a meeting was set up.
The Journal.
Trump's Attack on Big Law
The firm also agreed to not take clients based on any political ties or partisanship.
The Journal.
Trump's Attack on Big Law
And as these executive orders were coming out, what was the response from lawyers in those firms?
The Journal.
Trump's Attack on Big Law
President Trump yesterday rescinded an executive order targeting prominent law firm Paul Weiss. How big of a deal is this, given that Perkins had gotten a temporary injunction and that people in the legal community thought Paul Weiss had a pretty good case?
The Journal.
Trump's Attack on Big Law
What has Paul Weiss said about why they went this route of striking a deal instead of getting litigious?
The Journal.
Trump's Attack on Big Law
President Trump is pushing ahead. He said he's looking into executive orders against more law firms. Yesterday, he signed one against the firm Jenner & Block. Jenner said the executive order was similar to the one that had already been declared unconstitutional by a federal court and said it would pursue, quote, all appropriate remedies. Are you seeing any other sort of changes in the industry?
The Journal.
Trump's Attack on Big Law
among firms trying to get ahead of a conflict with Trump or dodge a conflict with Trump.
The Journal.
Trump's Attack on Big Law
What are the implications of like all of this on the legal system?
The Journal.
Trump's Attack on Big Law
These law firms are now having to decide how to respond. And none of the options are good. Welcome to The Journal, our show about money, business, and power. I'm Kate Leinbaugh. It's Wednesday, March 26th. Coming up on the show, Trump's attack on big law.
The Journal.
Trump's Attack on Big Law
That's all for today, Wednesday, March 26th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode by Josh Dawsey and Ryan Barber. Thanks for listening. See you tomorrow.
The Journal.
Will Paramount Settle With Trump?
That's all for today, Thursday, February 27th. The Journal is a co-production of Spotify and The Wall Street Journal. Additional reporting in this episode by Joe Flint and Drew Fitzgerald. Thanks for listening. See you tomorrow.
The Journal.
Will Paramount Settle With Trump?
Hello again. How are you? This is raw video footage from 60 Minutes, the longstanding news magazine show on CBS. Last fall, veteran correspondent Bill Whitaker sat down with Democratic presidential candidate Kamala Harris.
The Journal.
Will Paramount Settle With Trump?
It's Thursday, February 27th. Coming up on the show, Trump's fight against the news media runs headlong into a massive entertainment merger. Soon after 60 Minutes aired its interview with Harris, her opponent, Donald Trump, took to the stage at a campaign rally and asked his supporters a question.
The Journal.
Will Paramount Settle With Trump?
Trump did sue CBS for $10 billion. And our colleague Jessica Tunkel has been following the case.
The Journal.
Will Paramount Settle With Trump?
Here is Harris' answer as it aired on Face the Nation.
The Journal.
Will Paramount Settle With Trump?
I'm good. All right. Well, Madam Vice President... Whitaker kicked the interview off with questions about the Middle East and pressed Harris on the Biden administration's relationship with Israel's prime minister.
The Journal.
Will Paramount Settle With Trump?
And like sort of stepping back, in media generally, what is best practice when it comes to this kind of editing?
The Journal.
Will Paramount Settle With Trump?
After Trump won the election, several companies that he sued announced settlements. In December, ABC said it would pay Trump $15 million to settle a defamation lawsuit. The case involved an inaccurate statement by anchor George Stephanopoulos about a sexual abuse case against Trump. In January, Meta settled a case over Trump's suspension on Instagram and Facebook, paying him $25 million.
The Journal.
Will Paramount Settle With Trump?
$20 billion? Yes. What have legal experts said are the chances that Trump's lawsuit would succeed in court?
The Journal.
Will Paramount Settle With Trump?
And if they choose to settle, what do legal experts say that would show?
The Journal.
Will Paramount Settle With Trump?
This merger. CBS parent company Paramount is trying to get an $8 billion merger completed. But first, it needs approval from the Federal Communications Commission, which is now run by a Trump appointee. That's after the break.
The Journal.
Will Paramount Settle With Trump?
Paramount is a huge media conglomerate. It not only owns CBS, it also owns Showtime, Paramount Pictures, and its own streaming platform. And the company has been struggling for years. Long before the Harris interview aired, Paramount's owners had started merger talks with a production company called Skydance.
The Journal.
Will Paramount Settle With Trump?
David Ellison and Skydance seemed like a perfect suitor for Paramount and Sherry Redstone. But talks dragged on for more than a year.
The Journal.
Will Paramount Settle With Trump?
The deal was announced last summer, but to be finalized, it needed government approval, specifically the FCC.
The Journal.
Will Paramount Settle With Trump?
That is not what happened. What's holding up the deal at this moment?
The Journal.
Will Paramount Settle With Trump?
So whether Paramount settles with Trump should not have any impact on the FCC review?
The Journal.
Will Paramount Settle With Trump?
Is that unusual for the FCC, the Federal Communications Commission, to bring up the idea of bias as part of a merger review?
The Journal.
Will Paramount Settle With Trump?
Since CBS and Paramount have been so vehement that this case is frivolous, if they do settle, could it be interpreted as a quid pro quo for approval for the merger?
The Journal.
Will Paramount Settle With Trump?
A spokesperson for Paramount Global said, quote, this lawsuit is completely separate from and unrelated to the Skydance transaction and the FCC approval process. We will abide by the legal process to defend our case. And what has Skydance said?
The Journal.
Will Paramount Settle With Trump?
Would Skydance go ahead with the deal if the Trump lawsuit is still out there?
The Journal.
Will Paramount Settle With Trump?
And yesterday, there was an indication that a deal could be in the works. Trump told reporters that settlement talks are underway in his case against CBS.
The Journal.
Will Paramount Settle With Trump?
When you look at this, do you think it's more of a media story or a business story or a politics story?
The Journal.
Will Paramount Settle With Trump?
This answer and how it was edited has become the center of a storm involving President Trump, claims of election interference, and questions about media independence. This storm is also threatening an $8 billion merger that CBS's parent company, Paramount Global, desperately wants to get done. Welcome to The Journal, our show about money, business, and power. I'm Kate Leinbaugh.
The Journal.
Grindr Makes a Date With AI
Do you think that AI is going to be the future of dating apps?
The Journal.
Grindr Makes a Date With AI
As for Pietro, the AI wingman hasn't transformed his dating life. And right now, he's focusing on skiing with friends in Tahoe. When's your next date?
The Journal.
Grindr Makes a Date With AI
AI Wingman, a bot powered by artificial intelligence, meant to help its users find love. Pietro is one of 10,000 people who've been given a peek into this unreleased AI technology. So you were AI curious?
The Journal.
Grindr Makes a Date With AI
That's all for today, Thursday, February 13th. The Journal is a co-production of Spotify and The Wall Street Journal. If you like our show, follow us on Spotify or wherever you get your podcasts. We're out every weekday afternoon. Thanks for listening. See you tomorrow.
The Journal.
Grindr Makes a Date With AI
Welcome to The Journal, our show about money, business, and power. I'm Kate Leinbaugh. It's Thursday, February 13th. Coming up on the show, the new race on the AI frontier, love. Pietro has been using Grindr since he was 18. What does your about me say on Grindr?
The Journal.
Grindr Makes a Date With AI
Now, back in the dating game, Pietro is remembering the things he doesn't like about the apps. What is the worst part of online dating?
The Journal.
Grindr Makes a Date With AI
Pietro Pecora is 27, and he's single. He lives in San Francisco and works in tech. What's your dating life like right now?
The Journal.
Grindr Makes a Date With AI
Even though millions of people use dating apps to find romance and hookups, there's been some backlash. Like Pietro, some people don't like the time commitment. They don't like the slew of getting to know you messages that don't go anywhere. Some people are tired of the emphasis on looks. They just don't feel like dating apps are genuine. And others are ready for something new.
The Journal.
Grindr Makes a Date With AI
The dating apps are catching these signals, and they've been trying to right their relationship with users. Here's our colleague, Belle Lin.
The Journal.
Grindr Makes a Date With AI
Dating apps like Hinge, Tinder, and Bumble have been struggling with declining demand and user engagement. Many younger users have snubbed the apps, and companies want to make online dating better, more joyful, and faster. Enter AI. Here's the CEO of Tinder at a conference.
The Journal.
Grindr Makes a Date With AI
But the app that's done the most with AI? You guessed it. It's Grindr.
The Journal.
Grindr Makes a Date With AI
If a world where bots match lovers together sounds straight out of sci-fi... That's because it is. Take this episode of Black Mirror called Hang the DJ. In it, an algorithm matches different people in relationships until they find their lifelong partner.
The Journal.
Grindr Makes a Date With AI
Me too. A device pairs couples for fixed periods of time. In this scene, the AI even decides their meal. Do you know how we order?
The Journal.
Grindr Makes a Date With AI
But this sci-fi-type dating situation is not what the apps are offering right now, at least according to Pietro. He's been testing Grindr's AI wingman for about six months. He says the wingman is like a chatbot. It can give you dating tips, advice for how to navigate Grindr, and techniques for flirting. And, um, how did you use it?
The Journal.
Grindr Makes a Date With AI
So to help his real-life game, Pietro asked AI Wingman to write him some pickup lines.
The Journal.
Grindr Makes a Date With AI
Can you ask your AI wingman for an opening line if you bump into Pedro Pascal?
The Journal.
Grindr Makes a Date With AI
But what Pietro really wants is what he talked about earlier, help with filtering different profiles.
The Journal.
Grindr Makes a Date With AI
Yeah. Okay. Okay. Who is your fantasy person? What do they look like?
The Journal.
Grindr Makes a Date With AI
What do you wish this AI tool could do for you in future versions?
The Journal.
Grindr Makes a Date With AI
To figure out if Grindr's AI wingman is going to give Pietro the help he needs, we called up Grindr's CEO. That's coming up after the break.
The Journal.
Grindr Makes a Date With AI
So can you start by introducing yourself? Tell us your name and what you do?
The Journal.
Grindr Makes a Date With AI
George has been the CEO of Grindr since 2022, and he is also AI-curious.
The Journal.
Grindr Makes a Date With AI
Pedro Pascal, the heartthrob who starred in The Mandalorian, The Last of Us, and also Corona beer commercials.
The Journal.
Grindr Makes a Date With AI
How do you see this AI wingman changing the way people date?
The Journal.
Grindr Makes a Date With AI
Grindr put us in touch with one of your beta testers, a guy named Pietro. And he said the worst part of online dating and using Grindr is what he described as filtering.
The Journal.
Grindr Makes a Date With AI
So you think Wingman will be able to help Pietro spend less time filtering?
The Journal.
Grindr Makes a Date With AI
Can you have your Wingman out there chatting for you with other profile people who then their Wingman is chatting back?
The Journal.
Grindr Makes a Date With AI
In his hunt for tall, dark, and handsome, Pietro mainly uses the LGBTQ dating app Grindr. And about six months ago, Pietro agreed to beta test a new feature on the app.
The Journal.
Grindr Makes a Date With AI
How big of a priority is this for Grindr? And is it going to totally transform what the online dating world will look like?
The Journal.
Grindr Makes a Date With AI
I asked our colleague Belle Lynn if she thinks there's going to be an appetite to pay for AI to play matchmaker.
The Journal.
Grindr Makes a Date With AI
Do you think that AI is the answer for dating apps or is it just an industry grasping for an answer to a business problem?
The Journal.
The Collapse of Walgreens
Welcome to The Journal, our show about money, business, and power. I'm Kate Leinbaugh. It's Monday, March 10th. Coming up on the show, the collapse of Walgreens.
The Journal.
The Collapse of Walgreens
Walgreens was founded in Chicago in 1901. That was the same year that President William McKinley was assassinated and Teddy Roosevelt took over. Roast beef cost 15 cents a pound and a dozen eggs cost less than a quarter. Ford's Model T wasn't even built yet.
The Journal.
The Collapse of Walgreens
They were the milkshake innovator to create the malted milkshake?
The Journal.
The Collapse of Walgreens
I feel like this is like, you know, Americana trivia, like really good stuff.
The Journal.
The Collapse of Walgreens
Walgreens kept growing. In the decades after, it would put pharmacies in neighborhoods across the country. And business boomed.
The Journal.
The Collapse of Walgreens
Pharmacy chains like Walgreens strike deals with pharmacy benefit managers, or PBMs. PBMs are businesses that set which medicines patients can get. And they are the ones that negotiate with pharmacies on reimbursement rates. In 2011, Walgreens tried to play hardball with one PBM. It wanted better terms from Express Scripts. But its tough tactics didn't work out.
The Journal.
The Collapse of Walgreens
Being kicked out of Express Scripps' network meant that Walgreens lost access to millions of customers. And it added more financial pressure on the company. The next year, in 2012, Walgreens came up with a new solution. It hitched its wagon to a European pharmacy chain, Alliance Boots.
The Journal.
The Collapse of Walgreens
— The American retailer Walgreens has signed a deal to take a 45% stake in Alliance Boots, the parent company of the high street chain Boots. — As part of this deal, which was completed in 2014, Walgreens got a new director and shareholder, an Italian businessman named Stefano Pessina.
The Journal.
The Collapse of Walgreens
Pessina eventually became CEO, and he came up with a new plan for the company. One main focus was on its retail business.
The Journal.
The Collapse of Walgreens
Walgreens, the store with the red squiggly W, has been an American institution for more than a century. It's a place where you can fill your prescriptions, buy deodorant, toothpaste, shampoo, or pick up a pint of ice cream late at night. And it's everywhere. 70% of Americans live within five miles of a Walgreens-owned pharmacy. But this American institution is now at risk of falling apart.
The Journal.
The Collapse of Walgreens
Beyond retail, Pacina also had a prescription to help the pharmacy side of the business, to buy up urgent care and primary care clinics.
The Journal.
The Collapse of Walgreens
In a 2019 interview with The Wall Street Journal, Pessina said he was building a company that could last centuries. So Pessina has this strategy for how he can turn around Walgreens. How does it work out?
The Journal.
The Collapse of Walgreens
That's our colleague Joseph Walker. He's watched Walgreens go from a company worth more than $100 billion down to worth $10 billion today.
The Journal.
The Collapse of Walgreens
What went wrong for Piscina and Walgreens is after this break. With Walgreens' pharmacy business struggling, CEO Stefano Pacina identified other areas that he thought could be more profitable. He tried beefing up its retail business with Walgreens-branded merchandise.
The Journal.
The Collapse of Walgreens
Fecina also tried other things. Walgreens bought thousands of Rite Aid stores. It acquired a couple doctor's office chains. But the deals added more debt and failed to stop the pressure on its cash flow. Meanwhile, Walgreens and its rivals were searching for new solutions for their pharmacy businesses.
The Journal.
The Collapse of Walgreens
That deal allayed the reimbursement pressure for CVS. And Walgreens tried to do something similar and get a deal with the insurance company Humana. But the deal fell through. and the number of potential partners was thinning out.
The Journal.
The Collapse of Walgreens
Pacina stepped down as CEO in 2021, but stayed on as executive chairman. Walgreens hired two other CEOs in the past four years, but neither of them were able to turn the company around. And investors lost patience.
The Journal.
The Collapse of Walgreens
Last week, the private equity firm Sycamore announced it would buy Walgreens for $10 billion, a fraction of the $100 billion it was once valued at. Pacino will stay on as a shareholder. Sycamore plans to take the pharmacy chain off the stock market. In a statement, Walgreen's CEO said this will allow the company time to focus more long-term in its decision-making.
The Journal.
The Collapse of Walgreens
The deal is expected to close in about six months. What did Pacino get wrong about running pharmacies in America?
The Journal.
The Collapse of Walgreens
So is Walgreens going to fall into the bucket of Kmart's and Borders books and other failed chains?
The Journal.
The Collapse of Walgreens
Before we go, we wanted to tell you that we're thinking about hosting a live journal event. Tell us what you want to see by taking our survey. There's a link in our show notes. And for updates on our plans, please leave us your email address. That's all for today, Monday, March 10th. The Journal is a co-production of Spotify and The Wall Street Journal.
The Journal.
The Collapse of Walgreens
Additional reporting in this episode by Sharon Turlough. Thanks for listening. See you tomorrow.
The Journal.
Inside DOGE's Campaign of Secrecy
The show is made by Katherine Brewer, Pia Gadkari, Rachel Humphreys, Sophie Codner, Ryan Knudsen, Matt Kwong, Colin McNulty, Jessica Mendoza, Annie Minoff, Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alessandra Rizzo, Alan Rodriguez-Espinosa, Heather Rogers, Pierce Singey, Jivika Verma, Lisa Wang, Catherine Whalen, Tatiana Zamis, and me, Kate Leinbaugh, with help from Trina Menino.
The Journal.
Inside DOGE's Campaign of Secrecy
Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley. Additional music this week from Bobby Lord, Emma Munger, Griffin Tanner and Blue Dot Sessions. Fact-checking by Kate Gallagher and Mary Mathis. Thanks for listening. See you Monday.
The Journal.
Inside DOGE's Campaign of Secrecy
I'm Kate Leinbaugh. It's Friday, February 28th. Coming up on the show, behind the scenes of Doge's campaign to gut the federal government.
The Journal.
Inside DOGE's Campaign of Secrecy
Our colleague Scott Patterson has been trying to understand how Doge is operating. To do this, Scott and his team spoke to over two dozen current and former government employees, as well as senior officials with the Trump administration. And what they found was that on inauguration day, as Trump was being sworn in, Musk's team was already inside the Office of Personnel Management.
The Journal.
Inside DOGE's Campaign of Secrecy
Why was OPM the first agency that the Dozers wanted access to?
The Journal.
Inside DOGE's Campaign of Secrecy
Elon Musk was there to tell the cabinet about the work that DOGE, or the so-called Department of Government Efficiency, has been doing. He said they're helping to fix out-of-date computer systems as part of his goal to reduce the national deficit.
The Journal.
Inside DOGE's Campaign of Secrecy
A few days later, Doge put that very powerful tool to work. It sent out a test email intended to hit every single employee in the federal government. Days later, another email went out, this time with a choice. Quit your job and get eight months of paid leave or keep your job but risk being fired.
The Journal.
Inside DOGE's Campaign of Secrecy
At one point, according to Scott's reporting, a Doge programmer took control of OPM's website, taking down its diversity, equity, and inclusion pages. And sources told Scott that in video chats with OPM staff, the Dozers sometimes keep their cameras turned off.
The Journal.
Inside DOGE's Campaign of Secrecy
We reached out to the White House about this, and an administration official said Doge operates in secrecy partially because they know federal employees are opposed to their efforts and would want to thwart them. There are also safety concerns because the White House says that Doge employees are receiving threats. Doge has been using similar tactics at other agencies.
The Journal.
Inside DOGE's Campaign of Secrecy
At President Trump's first cabinet meeting on Wednesday, there was a familiar face standing up front wearing a black MAGA hat and a T-shirt that read tech support.
The Journal.
Inside DOGE's Campaign of Secrecy
So far, dozers have burrowed into systems all across the government, including the Treasury Department, the IRS, and the agency that oversees Medicare and Medicaid. They've also effectively shut down some agencies, like USAID, and they now have access to highly sensitive data.
The Journal.
Inside DOGE's Campaign of Secrecy
Whether or not that prediction is true, DOGE is moving fast to cut spending and slash the federal government.
The Journal.
Inside DOGE's Campaign of Secrecy
A White House spokesman said Doge, quote, has fully integrated into the federal government to cut waste, fraud, and abuse. He also said they will continue to do so and that many inside the government needed to get with the program. And last weekend, Dozers once again picked up their favorite tool and sent out another mass email with the subject line, what did you do last week?
The Journal.
Inside DOGE's Campaign of Secrecy
The email asked all federal workers to reply with a list of five accomplishments from their week. In a tweet, Musk said that failure to respond will be taken as a resignation. For some in the government, this was one step too far.
The Journal.
Inside DOGE's Campaign of Secrecy
How Musk responded to that pushback is coming up after this break. On Wednesday, Trump convened his first cabinet meeting. Reporters were there, Elon Musk was there, and that five-point email came up.
The Journal.
Inside DOGE's Campaign of Secrecy
The question came after reports that some cabinet officials had complained to the White House about the suddenness of Doge's moves, including unannounced incursions onto their turf and some of Musk's tweets.
The Journal.
Inside DOGE's Campaign of Secrecy
Another reporter questioned how the cabinet was feeling about Doge's actions.
The Journal.
Inside DOGE's Campaign of Secrecy
Trump backed Musk's actions. And the White House press secretary said that everyone is working together as one unified team. Quote, any notion to the contrary is false. Trump's support means Doge will keep moving forward with slashing government spending. So far, Doge claims it's already saved the government billions.
The Journal.
Inside DOGE's Campaign of Secrecy
— $50 billion. — $55 billion. — $65 billion in savings. Doge now says it's saving the government $65 billion. But a Wall Street Journal analysis found Doge's claims are overstated.
The Journal.
Inside DOGE's Campaign of Secrecy
Given all that Doge has done in just a few weeks, the Wall Street Journal wanted to get inside exactly how this new pseudo-agency has been operating. And our colleagues found a scorched earth approach that is incredibly secretive, quickly takes control of government data, and that tests the limits of what's legal. Welcome to The Journal, our show about money, business, and power.
The Journal.
Inside DOGE's Campaign of Secrecy
Doge says it's canceled $7 billion in contracts. But the journal analysis projects that number is closer to $2.6 billion. In part, that's because a lot of those contracts have already been paid. So canceling them doesn't save any money. When we first started hearing about this effort, this Doge effort, Musk was saying he wanted to save $2 trillion. How close do you think Doge will get to that?
The Journal.
Inside DOGE's Campaign of Secrecy
Yesterday, a federal judge ordered OPM to reverse the mass firings of probationary workers across agencies. saying that the terminations were probably illegal. That's all for today, Friday, February 28th. Additional reporting in this episode by James Benedict, Josh Dawsey, Caitlin Ostroff, Brian Schwartz, and Shane Shifflett. The Journal is a co-production of Spotify and The Wall Street Journal.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
On the call, Allred presented Effie with options, like interviews that would include Allred, a potential movie deal, and also licensing photos of the victim with the accused. Allred referred to that as the money shot.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
But Effie pushed back, saying she didn't want to make any money from her experience.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline has a different story to tell about Allred. She claimed that Allred's firm didn't properly investigate her allegations and later tried to prevent her from speaking out. She talked to our colleague Khadija Safdar.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Effie said she never sold her story or licensed any photos to a media outlet.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Allred steered Effie toward doing a press conference, telling her it was important for the public to see her. It was held online in March 2021.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Effie appeared on screen and tearfully read a statement with her allegations against Hammer.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
On a call about a month later, Effie told Allred she was suffering panic attacks. Effie shared a recording of the call with Khadija.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
In a statement, Allred said, quote, I practice tough love with clients and potential clients. She also said this to Effie.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
After Khadija's story ran, Allred put a statement up on her website. She said that her firm informs their clients of the options, benefits, and risks and is honest about what is possible. Not long after the press conference, Effie was asked if she would take part in a documentary about Armie Hammer's family, which she declined. She sent Allred an email saying she didn't want to be included.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Allred replied a month later saying she hadn't been retained for this purpose. In August 2022, a trailer of the documentary called House of Hammer was released. Allred was in it discussing Effie's case.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Allred eventually resigned as Effie's lawyer after Effie complained to a reporter about Allred's participation in the documentary.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
We asked Allred to respond to the allegations that some women felt repeatedly bullied and re-victimized by her firm. Allred said she often tells clients things that they don't want to hear because they deserve to be informed of the risks that they face. She said clients need to know that taking on the rich, the powerful, and the famous will be very challenging for them.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Quote, in order to win rights, they are going to need to be courageous and make sacrifices. We can't do it for them. We can only do it with them. Some of the women you spoke with had been allegedly assaulted by celebrities and now they're going to the celebrity law firm and they're feeling like they're, they allege they were taken advantage of.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
What's your takeaway from your reporting here?
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
That's all for today, Friday, March 14th. The Journal is a co-production of Spotify and The Wall Street Journal. The show is made by Catherine Brewer, Pia Gadkari, Rachel Humphries, Sophie Codner, Ryan Knutson, Matt Kwong, Colin McNulty, Jessica Mendoza, Annie Minoff, Laura Morris, Enrique Perez de la Rosa, Sarah Platt, Alessandra Rizzo, Alan Rodriguez-Espinosa,
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Heather Rogers, Pierce Singey, Jivika Verma, Lisa Wang, Catherine Whalen, Tatiana Zamis, and me, Kate Leinbaugh, with help from Trina Menino. Our engineers are Griffin Tanner, Nathan Singapak, and Peter Leonard. Our theme music is by So Wiley. Additional music this week from Peter Leonard, Nathan Singapak, Griffin Tanner, and Blue Dot Sessions. Fact-checking by Mary Mathis. Thanks for listening.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
In her reporting on Allred, Khadija has spoken to dozens of people, including former clients, lawyers, and people who've approached Allred's firm. Many said Allred's public image is at odds with their experience behind the scenes. Some clients said Allred's firm ignored their wishes and instead of helping them find their voice, silenced them through non-disclosure agreements.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Gloria Allred said that the journal didn't highlight her firm's approximately 10,000 happy clients. She's described the journal's reporting as a hit job and an unprecedented attack on her and her law firm. Welcome to The Journal, our show about money, business, and power. I'm Kate Leinbaugh. It's Friday, March 14th.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
The 83-year-old is the go-to lawyer for women's rights cases in the U.S. She has a reputation as a tough and tireless advocate for her clients. And she's represented women against powerful men, like Harvey Weinstein, R. Kelly, Bill Cosby, and Donald Trump. Truth matters.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Coming up on the show, the high pressure tactics Gloria Allred uses on her own clients.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline Wallner accused the acclaimed author Neil Gaiman of sexual exploitation. She said that it happened when she was a caretaker for a property Gaiman owned. Gaiman denied the allegations. Wallner approached Gloria Allred's firm, Allred, Morocco, and Goldberg, in 2021. She wanted to find a lawyer who could take on a case against such a high-profile figure.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline spoke with Allred's legal partner, Nathan Goldberg. And what happened surprised her. When she told him Gaiman's lawyer's name, he told her that he actually knew that lawyer and he would call him.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
After that call, things moved fast. Within a day of retaining Allred's firm, Caroline had signed a settlement with Gaiman. It included a non-disclosure agreement, or NDA, that both she and Gaiman signed. These agreements prevented her from suing Gaiman or speaking about her allegations against him to family, friends, and associates.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
She and Gaiman were also asked to destroy photos, texts, and videos they sent each other. But the settlement wasn't the only thing Caroline signed over those quick few days. When she agreed to be a client of Allred's firm, she signed a retainer agreement, basically a contract between a lawyer and a client. Within this contract was something called a forced arbitration clause.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
This clause is found in many types of contracts, and in this case was meant to prevent Caroline from taking the firm to court or publicizing her experience with the firm.
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The High Pressure Tactics Gloria Allred Uses On Her Own Clients
That's our colleague Khadija Safdar again.
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The High Pressure Tactics Gloria Allred Uses On Her Own Clients
It protects Allred and her firm.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline said when she signed the settlement agreement, her focus wasn't on her ability to speak about her case. She said she believed at the time she was Gaiman's only accuser.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Allred's famous for holding press conferences. In front of cameras and microphones, she hugs and comforts tearful clients.
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The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Gloria Allred is one of America's best-known lawyers.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
In a statement, Allred said, quote, Caroline said her top priority at the time was finding a place to live for herself and her three daughters after Gaiman had evicted them. I wasn't in the frame of mind to even make a decision about an NDA, to tell you the truth.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Allred's firm negotiated a $300,000 settlement for Caroline from Gaiman. Caroline tried to move on with her life. She stuck to the terms of her NDA and didn't discuss the case. But last summer, she listened to a podcast that changed all that. It was called Master, The Allegations Against Neil Gaiman. In it, other women made accusations against Gaiman. Gaiman has denied those allegations.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline began to feel strongly that she should speak out about what happened to her.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline wanted to speak out publicly and support the women. She contacted Goldberg, her lawyer at Allred's firm, to ask if she could.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline did break her NDA. Eventually, she hired a different lawyer to send a letter to Allred's firm alleging malpractice. Allred's firm responded, saying that Caroline couldn't sue or publicize her experience due to her retainer agreement. But there was more. Allred's firm made clear they had recently obtained what they called sexually provocative texts, photos, and videos from Gaiman's lawyer.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
These were materials that Caroline had sent Gaiman during the period she accused him of sexual exploitation. Caroline said she was surprised that one of Allred's lawyers, John West, would be in possession of these documents.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
You know... Caroline told Khadijah that she didn't send any nude photos or videos.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline Walner became a client of Allred's firm in 2021.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Caroline and Gaiman have now both filed arbitration claims against the other for breaching the terms of their NDA. Allred said she can't respond to specific client allegations because of ethics rules and other legal reasons. Caroline told Khadija that looking back at her experience with Allred's firm, she wished she'd been encouraged to go to the police. She also talked about signing the NDA.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Khadija spoke with dozens of people who felt silenced or let down by Allred. Effie's story is next. Efresina Angelova was 24 when she posted on her Instagram page messages she'd received from the actor Armie Hammer. Hammer has appeared in films like The Social Network and Call Me By Your Name. The messages discussed rape and cannibalism.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
They went viral online and led to other women making allegations against the star. Hammer has denied the allegations. Efrasina, who goes by Effie, spoke to our colleague Khadija.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Effie became a client of Allred's in 2021, and like Caroline, she was asked to sign a retainer agreement with the forced arbitration clause. She requested that the law firm remove it, but they refused. Effie ended up signing the agreement. Allred would help Effie pro bono to provide evidence to law enforcement and act as her media spokesperson when and if needed.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
It didn't include settlement negotiations or filing a lawsuit. Effie didn't sue Hammer, but she did file a police report, and Allred helped Effie provide evidence to the police. The L.A. District Attorney in 2023 decided not to bring charges against Hammer. But during the criminal investigation, Allred told Effie that she shouldn't speak publicly.
The Journal.
The High Pressure Tactics Gloria Allred Uses On Her Own Clients
Effie said she wanted to speak out for herself, and Allred offered options. She and Effie spoke on a call, and Effie shared a recording with Khadija.