Dewey creditors can pursue claims against firm execs, judge rules

The creditors claim that former executives Steven Davis, Stephen DiCarmine and Joel Sanders mismanaged the firm by “recklessly doling out individual partner contracts”

Many of Dewey & LeBoeuf’s ex-partners are safe from lawsuits connected to the firm’s demise. But that protection won’t extend to three of the firm’s former executives, after U.S. Bankruptcy Judge Martin Glenn ruled Thursday that Dewey’s unsecured creditors have the standing to sue the trio for damages.

A creditors committee is seeking to pursue mismanagement claims against former chairman Steven Davis, former executive director Stephen DiCarmine and former chief financial officer Joel Sanders, arguing that they “breached their fiduciary duties of care, loyalty and candor by recklessly doling out individual partner contracts that guaranteed compensation without regard to future performance,” Thomson Reuters reports.

Alanna Byrne

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.