Bankrupt Dewey & LeBoeuf’s retired lawyers are reportedly mad as hell the defunct law firm is asking them and other ex-partners to pay $104 million in exchange for not getting sued by the bankruptcy estate.Dewey – once one of the nation’s most prestigious firms – asked its former partners for the money earlier this month.
The ex-partners and retirees were technically once “owners” of the firm and could arguably owe Dewey’s creditors now that it has gone belly up.
But a group of 53 retirees and their widows are pretty mad about the cash demand, claiming Dewey actually owes them money for their unfunded pensions, the Wall Street Journal reported Tuesday evening.
The retirees’ lawyer Annette Jarvis called the $104 million deal “nothing more than a flagrant attempt by the grossly over-compensated partners who ran the firm into the ground to escape liability for their own conduct,” the WSJ reported.
Dewey went bankrupt in May after New York prosecutors reportedly began probing its former chairman, Steven Davis, for potential wrongdoing.
In June, a prominent former partner accused the firm’s top brass of gross mismanagement and running a Ponzi scheme to line their pockets at the expense of other lawyers at the firm.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.