Former LeBoeuf partners reject Dewey's clawback deal

A week ago, the team winding down the bankrupt NY law firm Dewey & LeBoeuf offered former partners a “clawback” settlement, which would shield the ex-partners from future liability in exchange for cash payments of between $25,000 to $3 million. The proposed deal also included hundreds of former partners that had received pension and other payments after January 2011. Now, a group of 53 retires and/or their widows from the LeBoeuf side has claimed that Dewey owes them money for pensions. The also want to be able to sue those that they blame for the failure of the firm, and oppose moves to equip these partners with an effective shield against litigation. Another objection to the plan is that by capping the repayment sum at $3 million, the plan unfairly protects the firm’s highest paid partners from liability.

Former LeBoeuf partners reject Dewey's clawback deal blogs.wsj.com Wed, Jul 18, 2012