Bankruptcy Law

Names of Former Dewey Partners Contributing to Bankruptcy Settlement Have Been Released

Dewey & LeBoeuf bankruptcy advisers released a list in a Thursday court filing detailing what former partners agreed to contribute for a proposed settlement with the estate, the AmLaw Daily reports.

According to the filing (PDF), the top three contributors are securities lawyer Ralph C. Ferrara, now a Proskauer Rose partner, who agreed to pay approximately $3.7 million; Berge Setrakian, an international commercial and corporate law partner now at DLA Piper, who agreed to pay $3.5 million; and Jeffrey L. Kessler, who headed Dewey’s litigation group and is now a Winston & Strawn partner, who agreed to pay approximately $2 million.

The Sept. 20 filing was in response to objections from retired Dewey partners, AmLaw reports, who argued that in a rush to finalize the bankruptcy plan, the estate did not get the most amount of money it could from former partners.

The proposed settlement agreement provides a waiver of firm-related liability to partners who agreed to participate, AmLaw reports. Steven Davis, the former Dewey chair, is not allowed to participate in the settlement, according to AmLaw. The firm’s advisers have said that the estate might bring claims against Davis and two former Dewey managers: Stephen DiCarmine, who served as the firm’s executive director, and Joel Sander, its CFO.

Previously Joff Mitchell, the estate’s chief restructuring officer, told AmLaw that the partners’ names were kept confidential based on requests from the partners and their lawyers.

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