Dewey's bankruptcy team proposes to settle clawback claims with former partners
Dewey & LeBoeuf’s bankruptcy team has proposed a settlement with the firm’s former partners in a bid to achieve a speedy resolution of disputes over profits that went with those partners when they left Dewey. The settlement would absolve former partners from any further liability in relation to the firm in exchange for the payment of a sum to compensate the firm for lost billings.
The deal is open to all former partners except former chairman Steven Davis, and a critical mass of former partners would have to agree to pay the settlement for it to be approved by creditors. The sum of the proposed settlement has not been specified.
Meanwhile, some of the same former partners are seeking compensation from Dewey’s estate, including for unpaid pension benefits.