Dewey administrators offers former partners an ultimatum

Former partners of the defunct New York law firm Dewey & LeBoeuf were offered an ultimatum last week - they can repay up to $103.6 million in pension benefits and other payments made by the firm, or face years of costly litigation. The ‘clawback’ deal, which was been offered to more than 700 former Dewy partners, provides that those who accept the terms will be shielded from future litigation by the firm. The funds raised will pay part of the firm’s $315 million in debts. The firm is also planning to pursue an estimated $60 million in profits from unfinished legal work that ex-partners took with them to their new firms, and is meanwhile trying to collect around $217 million in unpaid client bills.

Dewey administrators offers former partners an ultimatum online.wsj.com Mon, Jul 16, 2012