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Creditors Pursue Ex-Dewey Managers, Claim Generous Pay Contracts Were Recklessly Inked

Posted Nov 13, 2012 8:24 AM CDT
By Debra Cassens Weiss

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A creditors committee is citing alleged mismanagement in a request to pursue claims against the former chairman of Dewey & LeBoeuf and two other managers.

The unsecured creditors accuse the managers of “recklessly doling out individual partner contracts that guaranteed compensation without regard to future performance,” Reuters reports.

The committee is asking the judge overseeing the firm’s bankruptcy to approve its pursuit of claims against former chairman Steven Davis, chief financial officer Joel Sanders and executive director Steven DiCarmine.

The lawyer for the unsecured creditors, Ed Weisfelner, said he hopes to recover money from insurers that issued $50 million in policies covering the managers’ actions, the story says.

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