The capitulation by one of the top U.S. firms reflects deep worries that being threatened by the president could lead to financial ruin.

Paul Weiss was targeted by an executive order from President Trump. Its chairman, who had worked against Mr. Trump during his first term, then went to the Oval Office and cut a deal.

President Donald Trump on Friday targeted Paul Weiss in his latest attack on a top law firm over its work in court and ties to his opponents.