Brad Karp’s Fall Shows Growing Fallout From Epstein Files

Why It Matters

The fallout illustrates heightened reputational risk for elite advisers and forces law firms to reassess governance and client‑vetting practices. It also accelerates Paul Weiss’s strategic pivot toward high‑value M&A work.

Key Takeaways

• Karp resigned as Paul Weiss chairman after Epstein files
• Visit to Epstein mansion and son job request revealed
• Scott Barshay to succeed Karp, shifting firm focus
• Fallout highlights reputational risk for elite legal advisers
• DOJ file release spurs broader corporate scrutiny

Pulse Analysis

The Justice Department’s latest tranche of Epstein‑related documents has reignited a wave of scrutiny across Wall Street, Silicon Valley, and the legal elite. While the files initially exposed political figures, they now implicate senior counsel whose proximity to Epstein raises questions about judgment and ethical standards. For law firms, the episode serves as a stark reminder that personal associations can quickly become corporate liabilities, prompting firms to tighten internal compliance and background‑checking protocols.

Brad Karp’s resignation marks a dramatic turning point for Paul Weiss, a firm once celebrated for its heavyweight litigation bench. Karp, a trusted adviser to Fortune‑500 CEOs, saw his tenure end after the disclosure of a mansion visit and an email chain seeking a Hollywood role for his son. The board’s swift appointment of Scott Barshay—a rainmaker known for steering multi‑billion‑dollar M&A deals—signals a deliberate shift from a litigation‑centric identity to a growth‑focused corporate finance platform. This leadership change is likely to reshape the firm’s client roster and service emphasis, aligning with market demand for deal‑making expertise.

Beyond the immediate personnel shuffle, the incident amplifies broader concerns about corporate governance and risk management. Boards and senior executives are now more vigilant about the personal networks of their legal counsel, recognizing that reputational damage can cascade into shareholder value erosion. The episode also fuels a wider industry conversation on due‑diligence standards, prompting firms to adopt stricter conflict‑of‑interest policies and to monitor external affiliations more closely. As the legal market continues to consolidate, firms that proactively address these governance challenges will be better positioned to retain high‑profile clients and sustain growth.

Brad Karp’s Fall Shows Growing Fallout From Epstein Files

By Andrew Ross Sorkin, Bernhard Warner, and Niko Gallogly · February 5, 2026

Newly published files showed that Brad Karp had visited Jeffrey Epstein’s Manhattan mansion and sought a job for his son on a Woody Allen movie, among other revelations. Credit…Joshua Bright for The New York Times

Andrew here. The Epstein fallout has claimed its latest high‑profile casualty: Brad Karp, a consigliere to many powerful CEOs, has stepped down from his longtime role as chairman of the law firm Paul Weiss.

Karp’s position had grown increasingly precarious after a highly contentious settlement with the Trump administration — a move pushed largely by Scott Barshay, the firm’s star rainmaker. Now Barshay is set to lead Paul Weiss, symbolizing a shift at the firm that was once defined by an elite litigation department and is now defined by a huge corporate M&A shop.

We also take a look at Alphabet’s earnings and big — as much as $185 billion — AI‑spending plans, as well as cracks in the private‑credit market, which I’ve been worried about for a while. More below.

Epstein ties cost a top lawyer his job

The Justice Department’s latest release of files related to the convicted sex offender Jeffrey Epstein has led to the downfall of a senior British politician, spurred an examination of an NFL team co‑owner and raised questions about the U.S. commerce secretary.

They have now also cost Brad Karp, one of corporate America’s top legal advisers, his job, as the world continues to scrutinize Epstein’s ties throughout Wall Street, Silicon Valley and beyond.

Karp resigned suddenly last night as chairman of Paul Weiss, a major law firm. (He’ll be replaced by Scott Barshay, the firm’s top M&A rainmaker, though he will continue to advise corporate clients.) The move came after the Epstein file release revealed that Karp had been a guest at the convicted sex offender’s New York mansion and had exchanged several emails with Epstein. Karp had also asked for help getting his son a job on a Woody Allen movie.