Posted Oct 09, 2012 10:46 pm CDT
Only a little more than four months after Dewey & LeBoeuf filed for Chapter 11 bankruptcy in federal court in Manhattan at the end of May, some 400 former partners of the once-storied law firm have agreed to give up part of their 2011 and 2012 pay in exchange for a guaranty against any further future liability, the Wall Street Journal (sub. req.) reports.
As detailed in earlier ABAJournal.com posts, the bankruptcy estate had initially sought a clawback of over $103.5 million from as many as 700 or more ex-partners of Dewey. But as negotiations proceeded, that total was downsized, even as a number of partners appeared to be on the hook for millions of dollars.
ABAJournal.com: “Former Dewey Partner Alleges He and Others Were ‘Fraudulently Induced’ to Get Citibank Loans”
ABAJournal.com: “Citibank Says It Had No Duty to Warn Ex-Partner About Dewey Finances”
ABAJournal.com: “Proposed $71M Dewey Clawback Deal Gives Nod to Jones Day Partners’ Fraud Claims”
ABAJournal.com: “Names of Former Dewey Partners Contributing to Bankruptcy Settlement Have Been Released”