Posted Feb 11, 2013 12:00 pm CST
A group of retired partners of Dewey & LeBoeuf had been taking an aggressive position in the BigLaw firm’s bankruptcy, contending that they should be treated as creditors for the purpose of winding up the failed business since they are owed some $80 million in unpaid retirement compensation and benefits.
But now, for reasons that aren’t entirely clear, the group has proposed to settle with the bankruptcy estate, paying up to $5,000 each in exchange for a release of all claims that might otherwise be made against them, reports Reuters.
The settlement proposal filed in federal bankruptcy court in New York on Thursday night also calls for the bankruptcy estate to take over the retired partners’ claims against some former Dewey leaders. To be final, it must be approved both by the retired partners and the court.
Additional and related coverage:
ABAJournal.com: “Judge OKs $71.5M Settlement with Ex-Partners of Dewey”
ABAJournal.com: “Retired Dewey Partners Say Judge’s Fast-Track Clawback OK ‘Adds Insult to Injury,’ May Appeal”
ABAJournal.com: “Top 25 Partners Got $70M in Dewey’s Last Year; Unsecured Creditors May See 15 Cents Per Dollar”
Blog of Legal Times: “Dewey & LeBoeuf’s Art Collection Goes on the Auction Block”