LeClairRyan considered a number of options in recent months as its financial troubles mounted, including the creation of a new law firm, according to sources with knowledge of the firm.

Some lawyers received offers to join the new firm, which would have been called Novellus, a source with knowledge of the plans confirmed. The source said leaders of the effort had started the process of registering the name.

Records from the State Corporation Commission of Virginia show that two entities—Novellus LLC and Novellus Group LLC—were both registered on May 30.

But the Novellus plan appears to have fizzled. The American Lawyer reported last week that LeClairRyan, which ranked 179th by gross revenue in the Am Law 200 last year, had started the dissolution process.

Sources said the new firm, had it taken shape, would have continued a relationship with  UnitedLex Corp., the alternative legal services provider that LeClairRyan partnered with last year, and would have included lawyers who remained at the law firm earlier this year.

Reached by phone Tuesday, UnitedLex CEO Dan Reed said he was aware that LeClairRyan had a plan on the table earlier this year to create a new law firm. He said UnitedLex’s intention was to continue to support the new entity as a client if it came to fruition.

LeClairRyan CEO C. Erik Gustafson and firm president Elizabeth Acee did not immediately respond to calls seeking comment Tuesday afternoon.

LeClairRyan teamed up with UnitedLex in 2018 to create a joint venture called ULX Partners. As a part of that deal, LeClairRyan remained an independent law firm, but it also had a minority stake in ULX Partners, Gustafson said at the time. Around 300 employees of LeClairRyan became employees of ULX Partners, which aimed to eventually provide services to a larger network of law firms.

The May registration filings for Novellus LLC and Novellus Group LLC list Sean Lenehan as the registered agent, and include 421 King St., Suite 200 in Alexandria as the address. That is also the address and registered agent listed for Aptive Resources LLC, a company that provides “organizational change management” and other services to businesses and government entities, according to its website. A call to Lenehan at Aptive was not immediately returned Tuesday afternoon.

Multiple sources said that before proposing the idea of a new firm, LeClairRyan pursued merger talks with multiple different law firms, but those deals did not come together because of LeClairRyan’s debts and potential liabilities.

Lawyers and partners still remaining at LeClairRyan are looking for other firms to join. Sources said associates are expected to be paid through the end of the month.

A four-lawyer labor and employment team, including the co-leader of LeClairRyan’s labor and employment practice, is headed to Clark Hill. Williams Mullen, which hired LeClairRyan co-founder Gary LeClair and two other corporate lawyers from the firm late last month, announced Tuesday that it added one more corporate lawyer and two energy attorneys from LeClairRyan.

Other groups are said to be in talks with Barclay Damon, Lewis Brisbois Bisgaard & Smith and Fox Rothschild. Fifteen aviation lawyers from LeClairRyan have already agreed to join Fox Rothschild and will officially make the move later this month.

Dan Packel and Jack Newsham contributed to this report.

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LeClairRyan Takes Steps to Dissolve as Its Lawyers Seek New Homes