Photo: Getty Images
Bankrupt Dewey & LeBoeuf, once one of the nation’s most prestigious firms, offered its partners a $104 million deal that would resolve potential litigation against hundreds of ex-partners, Reuters reported Wednesday.When law firms file for bankruptcy, they typically sue the partners who jumped ship and took the firm’s clients with them.
These partners were technically “owners” of the firm and arguably owe its creditors money.
This kind of litigation can go on for years, and Dewey’s ex-partners could avoid a protracted court battle by accepting the $104 million deal, which would help pay off creditors, Reuters pointed out.
Mark Zauderer, a lawyer who represents 57 ex-partners, acknowledged the firm offered former partners a deal but told Reuters “it would not be a safe bet that our clients will agree to it.”
Dewey filed for bankruptcy in late May, blaming the economy and the massive pay packages it gave its star lawyers.
Business Insider Emails & Alerts
Site highlights each day to your inbox.