Dewey retirees unhappy with proposed settlement
It seems as though no ones happy with Dewey & LeBoeuf these days: not creditors, not regulators and certainly not its former partners, who may be on the hook for the firms massive debts.
July 18, 2012 at 07:40 AM
9 minute read
The original version of this story was published on Law.com
It seems as though no one's happy with Dewey & LeBoeuf these days: not creditors, not regulators and certainly not its former partners, who may be on the hook for the firm's massive debts.
Last week, the firm proposed a settlement that would release former partners from claims by creditors, in exchange for payments of between $25,000 and $3 million. The defunct Dewey owes $315 million to creditors; the settlement, if accepted, would cover up to $103.6 million of that amount.
But some Dewey retirees aren't rushing to open their wallets, according to the Wall Street Journal. A group of 53 retirees has spoken out against the deal, arguing that the $3 million cap favors highly paid partners—some of whom made more than $6 million annually. Also controversial is the fact that the settlement would prevent lawsuits against former Dewey executives, who some partners blame for mismanaging the firm's finances.
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