Posted on 05/29/2012 4:38:59 AM PDT by sunmars
The crippled law firm Dewey & Leboeuf filed for chapter 11 bankruptcy protection on Monday night and will seek approval to liquidate its business after failing to find a merger partner, marking the biggest collapse of a law firm in US history.
"During the first quarter of 2012, the firm was confronted with liquidity constraints that led to the precipitous resignation of over 160 of the firm's 300 partners by May 11," the New-York based firm said.
Dewey listed liabilities in the range of $100m to $500m, according to the filing. It had already terminated 433 of its 533 New York employees earlier this month, according to the state's labor department.
The firm's collapse is expected to be the subject of years of court proceedings, and a number of former partners have already retained lawyers to represent them.
Monday's filing follows months of turbulence, as wave after wave of partner defections shattered the high-profile firm from within. In April, the Manhattan District Attorney's office launched a criminal probe of former firm chairman Steven Davis. He has denied any wrongdoing.
The result of a 2007 merger between Dewey Ballantine and LeBoeuf, Lamb, Green & MacRae, Dewey & LeBoeuf had about 1,450 attorneys at its peak, according to The National Law Journal.
But the firm was eventually undone by a combination of the economic downturn, excessive compensation and governance problems, according to former partners and others in the industry. In particular, Dewey's management promised millions in packages to about 100 partners, according to the court filing, leaving it strapped for cash when revenues fell during the recession.
(Excerpt) Read more at telegraph.co.uk ...
Or Kennedy’s old firm, “Winem, Dinem, Dinkum and Dunkem”
In classical terms, we are a feminine nation. We value form and feeling over substance.
That doesn't bode well for us.
Could also emerge as the law firm of Ben Dover and C. Howard Fields
Egad.
Someone crippled them? Why, they oughtta sue the bastid!
John Edwards, call your office (when you get out of prison)!
One law firm down, 10000000 to go!
Instead of declaring Chapter 11 why didn’t they hold out for a “to big to fail” g’mint bailout.
I thought it was the new socialist American way?
sheltered childhood? never watched the Three Stooges? lol. free
gards,
At least there is some good news in this downturn.
Pray for America
Well sure - he was a lawyer, wasn't he?
The Great One had a chance to step in and “save” the company. Oh, wait, there are no union members here. Never mind.
Dewey, Cheatham, and Howe?
Three Stooges reference nes pas?
A good start.
Yup.
And so the blood-sucking (B-S)heads of a firm of B-S lawyers has to hire outside B-S lawyers to defend themselves from hordes of government B-S lawyers. Guess who’s still billing?
Right! Other B-S lawyers! Leaches feeding upon leaches.
The whole law professions has degenerated into such a self-serving pool of slime, I rather relish hearing that these unproductive parasites are forced to scramble for cover.
Paying wordsmiths with no morals to extract money from those unable to protect themselves is just plain wrong. Is it a coincidence most professional politicians are also lawyers? I think not.
Bode well?
Hang, we're way past it now.
Read After America: Get Ready for Armageddon by Mark Steyn
Talk about yer CF of epic proportions !
< /tears >
< lol >
Talk about yer CF of epic proportions !
< /tears >
< lol >
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