Sullivan & Cromwell Threatens to Withdraw Funding from Law School Groups Over Harassment Stand

Sullivan & Cromwell has indicated that it may withdraw financial support from law school student groups unless they explicitly oppose harassment, particularly in light of recent Pro-Palestine protests on campuses. The New York-based law firm reached out to around 50 student organizations earlier this year, including affinity groups at Yale Law School and New York University Law School, seeking their endorsement of a November 2023 letter condemning anti-Semitism, Islamophobia, and other forms of bigotry.

Milana Hogan, the firm’s Chief Talent Officer, explained that the emails requesting support for the letter were part of a broader reassessment of the firm’s on-campus recruitment and sponsorships. She emphasized the importance of ensuring alignment between the firm and the student groups it backs. Read more here.

The letter, initially spearheaded by Sullivan & Cromwell senior chair Joe Shenker, aimed to counter rising anti-Semitic incidents on college campuses following the Hamas attack on Israel in October 2023. The document condemned various forms of hatred and bigotry and was endorsed by over 250 law firms, including prominent names like Cravath, Swaine & Moore, and Latham & Watkins. Shenker stressed the necessity of ensuring the firm’s values are mirrored by the groups they sponsor.

Sullivan & Cromwell client and hedge fund manager Bill Ackman lauded the firm’s stance, citing their principled approach as a catalyst for entrusting them with more business. However, not everyone has welcomed this move. Muslim legal groups, including the American Muslim Bar Association, have criticized the letter and the broader support it received from Big Law, arguing that it has fueled anti-Arab sentiments in the United States.

Further reflecting the divided reaction, a cohort of over 90 law school deans, including leaders from Columbia Law School and Stanford Law School, has also chimed in. They released a letter calling for training lawyers to engage respectfully across partisan and ideological divides, aiming to foster a more inclusive approach.

For further details on Sullivan & Cromwell’s actions and the broader implications, click here.