Posted Aug 09, 2012 09:22 pm CDT
Contending that the same “pre-bankruptcy insiders” who oversaw the downfall of Dewey & LeBoeuf are still effectively controlling the windup of the once-storied law firm, a group of retirees is petitioning the a Manhattan federal court to appoint an independent trustee or examiner to look out for other partners’ interests as the firm is dissolved.
The motion (PDF) was filed Wednesday by an ad hoc committee of retired partners who were at LeBoeuf Lamb Greene & MacRae when the firm merged in 2007 with Dewey Ballantine, the Wall Street Journal Law Blog reports.
The group currently helping with Dewey’s bankruptcy, the committee says in a written statement “appears to be directed by pre-bankruptcy insiders” that are “acting to shield and protect the partners who controlled Dewey & LeBoeuf prior to the bankruptcy filing and who enriched themselves at the expense of the retirees and other lawful creditors.”
The motion is likely to further delay a decision on a proposed plan to claw back from the firm’s former partners claimed excess compensation they received in years past.
ABAJournal.com: “Former Dewey Partner’s Suit Compares Firm Leaders’ Lateral Partner Recruitment to ‘Ponzi Scheme’”
ABAJournal.com: “Defendant Dewey Leader Calls Ex-Partner’s ‘Ponzi Scheme’ Suit ‘Sad,’ Says Plaintiff Got Bigger Bucks”
ABAJournal.com: “Retiree Group Claims Dewey Clawback Plan Protects Leaders at Expense of Other Partners”
ABAJournal.com: “Dewey Offers New Clawback Deal; Top Earners and Firm Leaders Would Pay More”