A group of Dewey & LeBoeuf retired partners that had been fighting for millions of dollars in compensation from the bankrupt firm changed course Friday and agreed to return a portion of their compensation as part of a clawback settlement.
As part of the proposed deal, up to 125 retirees or their beneficiaries will return either $5,000 or one-quarter of the retirement payments and compensation that Dewey paid them in 2011 and 2012—whichever is smaller. They also will pay back 60 percent of any tax advances that Dewey made on their behalf during the same time period. In return, they will be immune from any future lawsuits connected with the firm’s demise.
The ex-partners had previously sued Dewey for more than $80 million, arguing that the firm owed them pension benefits. They also rejected a previous clawback settlement, which more than 400 former partners signed on to last October, because it allegedly favored high-earning partners and shielded firm executives from liability in connection with Dewey’s May 2012 bankruptcy.
The retirees did not give a reason behind their reversal, according to Thomson Reuters, which reports that more than half of the ex-partners have agreed to the settlement.
For more InsideCounsel coverage of the Dewey bankruptcy, see:
Dewey will pay to shred old client files
Dewey executives face lawsuit over $35 million bond purchase
Dewey creditors can pursue claims against firm execs, judge rules
Dewey & LeBoeuf seeks $13 million for LA Dodgers bankruptcy case
Dewey trustee objects to proposed $165,000 bonus
Infographic: The timeline of Dewey’s downfall
Former Dewey partner sues management, claims they were “running a Ponzi scheme”
