Former Dewey partners attack proposed clawback settlement in court

An attorney for the ex-employees accused members of the firm’s wind-down team of not fully investigating potential wrongdoing by firm management

An attorney representing a group of former Dewey & LeBoeuf partners argued against a proposed clawback settlement with the defunct firm in a hearing Thursday, questioning members of Dewey’s wind-down team about their alleged interests in the deal.

Last month, more than 450 of the firm’s 672 ex-partners reportedly agreed to pay between $5,000 and $3.5 million each in a clawback settlement that would release them from future lawsuits. If U.S. bankruptcy court judge Martin Glenn approves the deal, Dewey’s estate stands to recover $71.5 million from the deal, which will go toward paying down its $560 million debt.

Alanna Byrne

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