The once-powerful law firm Dewey & LeBoeuf could be forced into bankruptcy, Reuters is reporting.
rumours of Dewey’s imminent demise began to swirl following reports that prosecutors were investigating its now-booted chairman, Steven Davis, for misconduct.
Legal experts have speculated that multi-million dollar salaries for the firm’s star lawyers also led to Dewey’s financial woes.
While Dewey seems to be avoiding a voluntary bankruptcy, a lawyer representing 51 retired pension partners told Reuters that pushing the firm into bankruptcy could be a possibility.
“We are working on that,” said Annette Jarvis of Dorsey & Whitney, who represents retired partners of one of the firms that merged into Dewey & LeBoeuf, according to Reuters.
The word of a forced bankruptcy came the same day news emerged that Charles Landgraf, the last of Dewey’s top managers, abandoned the firm for Arnold & Porter, according to Reuters.
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