Dewey’s $71 million clawback settlement wins court approval

U.S. Bankruptcy Judge Martin Glenn ruled that the deal would help the firm’s estate avoid protracted and costly litigation

A U.S. bankruptcy judge approved a $71.5 million settlement between former Dewey & LeBoeuf partners and the bankrupt law firm’s estate on Tuesday.

Under the terms of the deal, roughly 400 of Dewey’s 670 ex-partners will pay between $5,000 and $3.5 million of their compensation in exchange for immunity against future lawsuits connected with the firm’s demise. In his approval of the settlement, U.S. Bankruptcy Judge Martin Glenn said that the agreement “will lead to a quicker wind-down in Chapter 11, and—more importantly—a quicker and more certain distribution to creditors.”

Alanna Byrne

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