Scott Barshay, the newly installed managing partner of Paul, Weiss, Rifkind, Wharton and Garrison, allegedly engineered a multimillion-dollar departure agreement to remove Lex Korberg, the firm's first openly transgender partner, from client-facing work before Barshay assumed leadership. According to reporting, Barshay determined that Korberg's presence on client matters posed a business risk, prompting negotiations that resulted in Korberg's exit from the firm.
The arrangement raises serious questions about discrimination and hostile work environment claims under Title VII of the Civil Rights Act and New York State Human Rights Law, which prohibit employment discrimination based on gender identity. A partner departure structured around gender identity concerns could expose Paul, Weiss to litigation and regulatory scrutiny from the Equal Employment Opportunity Commission and state authorities.
The transaction structure itself carries reputational and legal implications. Large law firms typically justify partner departures through standard business rationales. A confidential settlement designed to separate a partner from client relationships based on protected characteristics creates discoverable evidence of discriminatory intent and could undermine any legitimate business justification defense.
For Korberg, options include pursuing claims of discrimination, constructive discharge, or breach of partnership agreement, depending on the severance terms and whether the departure was genuinely voluntary. The "multimillion-dollar" figure suggests a substantial payment, but such settlements do not extinguish underlying legal claims unless properly structured with explicit waivers and nondisparagement clauses.
For Paul, Weiss, the reputational damage extends beyond potential litigation. Major clients and institutional investors increasingly scrutinize law firm diversity practices and anti-discrimination policies. Explicit or implied opposition to LGBTQ+ partners working on client matters contradicts public commitments to inclusive workplaces and could trigger client relationship reviews.
This incident highlights tension between partner