Regulators sue Dewey, Warsaw office transfers to Greenberg Traurig

Pension Benefit Guaranty Corp. files suit over Dewey’s underfunded pensions

So far this week, there’s been good news and bad news for failing New York law firm Dewey & LeBoeuf. First the bad news: The Pension Benefit Guaranty Corp. (PBGC), which oversees U.S. private-sector pension plans and interjects to cover plans when employers cannot pay promised benefits, sued Dewey on Monday.

PBGC spread word last week that it intended to take over three of the firm’s pension plans, which it claims are underfunded by $80 million. The agency is worried that the sale of Dewey affiliates, which are partly responsible for funding the pensions, could make it more difficult for PBGC to recoup money to make up for the shortfall.

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