Dewey warns employees that firm could shut down
Signs are now solidly pointing toward the end for New York law firm Dewey & LeBoeuf. Dewey issued advance notice to its employees under the Federal Worker Adjustment Retraining and Notification Act (WARN) last Friday that they may soon lose their jobs if the firm is forced to shutter.
May 07, 2012 at 08:11 AM
18 minute read
The original version of this story was published on Law.com
Signs are now solidly pointing toward the end for New York law firm Dewey & LeBoeuf.
Dewey issued advance notice to its employees under the Federal Worker Adjustment Retraining and Notification Act (WARN) last Friday that they may soon lose their jobs if the firm is forced to shutter.
“As you are undoubtedly aware, Dewey & LeBoeuf LLP has unexpectedly experienced a period of extraordinary difficulties in the last few days,” the firm wrote. “Although we continue to pursue various avenues, it is possible that adverse developments could ultimately result in the closure of the firm, which would result in the termination of your employment.”
The notice, which employers are required under state and federal laws to send to employees in advance of a mass layoff or shutdown, indemnifies the firm of being held liable for back pay should such events come to pass. Dewey also noted in the letter that employees will not have any “bumping” rights, which may allow some workers to use their seniority to remain employed by displacing another employee from their job.
According to the Wall Street Journal, Dewey, which still owes about $75 million on a $100 million credit line, is still not considering bankruptcy. Last week, Dewey was facing a deadline to renegotiate its credit with a group of banks that were considering whether to extend that deadline.
Things have rapidly deteriorated for Dewey. In a span of less than 10 days, merger talks with law firms Greenberg Traurig and SNR Denton fell apart.
SNR Denton reportedly had suggested a full merger in which it would have assumed the more than 1,000 remaining Dewey attorneys. However, the deal was dependent upon the merged firm's ability to secure hundreds of millions of dollars in financing, which the new entity would have repaid over a period of five years.
Dewey reportedly also had talks with Washington, D.C.-based Patton Boggs about a potential merger.
Last Monday, Dewey sent another internal memo suggesting that its partners look for alternative employment, and that its management team also was looking to jump ship.
Making matters worse is that former Dewey chairman Steven Davis, who was until recently part of the firm's new management group, is under investigation by New York district attorneys over allegations of wrongdoing.
A preliminary investigation was instigated by a group of Dewey partners who asked District Attorney Cyrus Vance to examine “financial irregularities” at the law firm. Prosecutors are said to be looking into whether the firm made misleading statements about payments owed to partners.
Davis was cut loose as soon as news of the inquiry broke.
For more on the WARN notice, read the Wall Street Journal.
And for more on Dewey's downfall, read:
Signs are now solidly pointing toward the end for
Dewey issued advance notice to its employees under the Federal Worker Adjustment Retraining and Notification Act (WARN) last Friday that they may soon lose their jobs if the firm is forced to shutter.
“As you are undoubtedly aware,
The notice, which employers are required under state and federal laws to send to employees in advance of a mass layoff or shutdown, indemnifies the firm of being held liable for back pay should such events come to pass. Dewey also noted in the letter that employees will not have any “bumping” rights, which may allow some workers to use their seniority to remain employed by displacing another employee from their job.
According to the Wall Street Journal, Dewey, which still owes about $75 million on a $100 million credit line, is still not considering bankruptcy. Last week, Dewey was facing a deadline to renegotiate its credit with a group of banks that were considering whether to extend that deadline.
Things have rapidly deteriorated for Dewey. In a span of less than 10 days, merger talks with law firms
Dewey reportedly also had talks with Washington, D.C.-based
Last Monday, Dewey sent another internal memo suggesting that its partners look for alternative employment, and that its management team also was looking to jump ship.
Making matters worse is that former Dewey chairman Steven Davis, who was until recently part of the firm's new management group, is under investigation by
A preliminary investigation was instigated by a group of Dewey partners who asked District Attorney Cyrus Vance to examine “financial irregularities” at the law firm. Prosecutors are said to be looking into whether the firm made misleading statements about payments owed to partners.
Davis was cut loose as soon as news of the inquiry broke.
For more on the WARN notice, read the Wall Street Journal.
And for more on Dewey's downfall, read:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllGC Conference Takeaways: Picking AI Vendors 'a Bit of a Crap Shoot,' Beware of Internal Investigation 'Scope Creep'
8 minute readWhy ACLU's New Legal Director Says It's a 'Good Time to Take the Reins'
'Utterly Bewildering': GCs Struggle to Grasp Scattershot Nature of Law Firm Rate Hikes
GCs Jettisoning Zero-Based Budgeting in Quest to Be Nimble, More Efficient
3 minute readTrending Stories
- 1'The Show Must Go On': Solo-GC-of-Year Kevin Colby Pulls Off Perpetual Juggling Act
- 2Legal Speak at General Counsel Conference East 2024: Match Group's Katie Dugan & Herrick's Carol Goodman
- 3Legal Speak at General Counsel Conference East 2024: Eric Wall, Executive VP, Syllo
- 4Battle for Top Talent Accelerates Amid Profit and Demand Surge
- 5Friday Newspaper
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250