Dewey & LeBoeuf files for bankruptcy
Dewey & LeBoeuf has admitted defeat, filing for chapter 11 bankruptcy after failing to find a merger partner that could save it from liquidation. The collapse is the largest law firm failure in US history.
The firm has been losing partners all year long, after changes to the compensation arrangements and a worsening economic environment led many to believe that the firm was not capable of rewarding their work. These departures exacerbated a difficult situation, and the firm has been unable to recover from the losses.
Dewey's assets consist of about $13 million in cash, accounts receivable of about $255 million, various pieces of artwork, and about $11 million invested in an insurance consortium, among other potential claims, according to the filing.
The firm said that the 401(k) plans and qualified pension plans of its current and former employees and partners are held in trust and cannot be accessed by the firm's creditors.
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