Dewey partners agree to $60 million clawback deal
Former partners at failed law firm Dewey & LeBoeuf have agreed to pay more than $60 million back to the firm. The settlement is an attempt to account for client fees that were partially earned at Dewey but were paid to the firms that took on partners from Dewey in the months before and after its collapse.
So long as the deal is approved by a bankruptcy judge the sum will go towards paying firm’s creditors, which are owed more than $300 million.
Around half of Dewey’s former partners took part in the settlement, which insulates them from further litigation in connection with the collapse of the firm.
“This is a key milestone we are pleased to have reached: an early settlement that can deliver meaningful recoveries to creditors and let former partners put this behind them,” said Joff Mitchell, Dewey’s chief restructuring officer and an executive at the advisory firm Zolfo Cooper.
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