The judge overseeing the Dewey & LeBoeuf bankruptcy ruled Thursday that the defunct firm’s unsecured creditors can try to recoup some of the millions they are owed by suing a trio of former Dewey leaders.
How much such litigation might ultimately yield remains an open question, though, because it is unclear whether a $50 million management policy taken out by Dewey will cover claims brought against former chairman Steven Davis, former executive director Stephen DiCarmine, and former chief executive officer Joel Sanders.
While the official committee of unsecured creditors appointed in the bankruptcy received approval to pursue claims against the trio on behalf of the estate following a hearing before U.S. Bankruptcy Judge Martin Glenn Thursday morning, the lead insurer connected to the policyXL Specialty Insurance Companyhas said such suits may not be covered because Dewey, as the policyholder, is essentially suing itself, an attorney for two of those former leaders said in court.
