Rudy Giuliani. Photo Credit: teapartycheer.com

Rudy Giuliani, whose comments this month on behalf of President Donald Trump placed heightened scrutiny on his client and his law firm, has resigned from Greenberg Traurig.

The firm said Giuliani's “all-consuming” work on the president's behalf is lasting “longer than initially anticipated.”

Giuliani first took a leave from Greenberg Traurig on April 19, first telling reporters in interviews that his role on Trump's legal team for special counsel Robert Mueller's investigation would be limited, and that he was hoping for a resolution in a matter of weeks.

Three weeks later, the picture has become more complicated, after Giuliani said in press interviews that Trump had reimbursed Michael Cohen for payments to the adult actress known as Stormy Daniels—placing increased attention on the payments and putting a spotlight on his practice at Greenberg.

In a Fox News interview last week, the former New York City mayor appeared to reference his firm practice in explaining payments from Cohen to Daniels, who has claimed to have an affair with Trump.

“That was money that was paid by his lawyer, the way I would do, out of his law firm funds or whatever funds, it doesn't matter,” Giuliani said, adding Trump “did know about the general arrangement that Michael would take care of things like this. Like, I take care of things like this for my clients. I don't burden them with every single thing that comes along.”

In a statement first reported in The New York Times, a firm spokeswoman said Greenberg couldn't speak for Giuliani about “what was intended by his remarks.” She added, “Speaking for ourselves, we would not condone payments of the nature alleged to have been made or otherwise without the knowledge and direction of a client.” Greenberg confirmed its statement to ALM on Thursday but said the Times had “mischaracterized” Giuliani's departure “in an unfair and misleading manner.”

A Greenberg spokeswoman earlier told ALM that Giuliani's initial leave of absence was arranged after the opportunity to represent the president arose suddenly. “Due to potential conflicts and the need for a quick decision, an unpaid leave of absence made sense to both Mr. Giuliani and the firm, rather than making a long-term decision,” the spokeswoman said last week.

Even though Greenberg has represented Trump entities in the past, Giuliani's leave effectively meant Greenberg was not taking on Trump as a client for the Mueller investigation, legal ethics experts confirmed. Several law firms are said to have turned down representing the president due to potential conflicts, public relations headaches and business and recruitment concerns.

Some observers described the leave of absence arrangement between Greenberg and Giuliani as unlike any situation they had encountered. The Greenberg spokeswoman said other Greenberg attorneys have taken leaves for many different reasons on a case-by-case basis.

In announcing Thursday that he had resigned from the firm, Giuliani said it was in “everyone's best interests” that his departure be complete. “This way, my sole concentration can be on this critically important matter for our country,” he said in a statement provided by the firm.

Richard Rosenbaum, Greenberg Traurig executive chairman, said in a statement that when Giuliani initially took the leave, “his intent was to play a limited role, for a short period of time, to address specific matters for President Trump.”

“After recognizing that this work is all consuming and is lasting longer than initially anticipated, Rudy has determined it is best for him to resign from the firm,” effective Wednesday, Rosenbaum said.

Rosenbaum and Giuliani praised one another in their remarks. Rosenbaum said Giuliani is a friend and that he has “a great deal of respect for the mayor's incredible career and what he has done for New York City and our country for many years.” Giuliani said he will “always treasure the personal friendships” he made at Greenberg, and he had “a wonderful experience” at the firm.

Miami-based Greenberg hired Giuliani in early 2016, after the former mayor left what was then Bracewell & Giuliani, taking his name with him. He became chair of the cybersecurity, privacy and crisis management practice at Greenberg, while still leading a security and consulting business under Giuliani Partners.

In exiting Greenberg, Giuliani also leaves his longtime law partner and ally, Marc Mukasey, who was initially rumored as a possible addition to Trump's legal team. Mukasey announced last week he is staying at the firm.

Remarking on Giuliani's departure, law firm management consultant Peter Zeughauser said a leave of absence was “probably not enough for Greenberg.” A leave implied “he's coming back, and I think firms have decided it's not tenable to have the association with the president,” Zeughauser added.

“Giuliani's separation from the firm is further evidence of Big Law's concern about representing [Trump],” he said.

Still, a person with knowledge about Giuliani's resignation said it was an amicable separation from the firm, and a number of prominent shareholders at Greenberg remain close to Giuliani. Besides Mukasey, his longtime law partner and the chair of the firm's white-collar defense practice, the firm also counts among its shareholders Robert Harding, who was deputy mayor for economic development and finance under Giuliani; and Jake Menges, who was the mayor's deputy chief of staff.

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