Former Dewey partners to pay at least $50 million in clawback settlement

Several hours before the deadline, partners agree to a deal that will shield them from future Dewey-related lawsuits

It’s the moment we’ve all been waiting for: Former Dewey & LeBoeuf partners have agreed to return at least $50 million to the firm in a clawback deal that will shield them from future lawsuits.

At least 300 of the 672 eligible partners agreed to the settlement, according to the Wall Street Journal, although some still have complaints about the terms of the deal. The settlement previously underwent two revisions to address concerns that it favored highly paid partners and firm management at the expense of lower-earning employees. Dewey, which filed for bankruptcy on May 28, stood to gain up to $90.4 million from the settlement.

Now, Dewey’s estate will await a judge’s approval on the settlement. Partners who did not agree to the settlement could face litigation related to the firm’s demise, unless they pay a 25 percent penalty to sign on after the deadline.

Read more at the Wall Street Journal and Reuters.

For more InsideCounsel coverage of Dewey’s downfall, read:

Dewey extends clawback settlement yet again

Dewey seeking to shutter Russian, Kazakh offices

Dewey extends deadline on clawback settlement, signals further revisions

Bankruptcy judge OKs most of Dewey’s $700,000 bonus plan

Dissecting Dewey’s money management

Dewey paid executive partner $190,000 after bankruptcy filing

Former Dewey partner sues management, claims they were “running a Ponzi scheme”

 

 

Alanna Byrne

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