WSJ: Ex-Dewey Partners Agree to 'Clawback'

The Wall Street Journal reported that former partners from defunct law firm Dewey & LeBoeuf have agreed to give back at least $50 million in past earnings in exchange for immunity from lawsuits relating to the New York firm’s demise.

The Journal said if approved, the deal would mark an unusually early resolution of such “clawback” claims, which typically take years to resolve following a law firm’s failure.

Banks, bondholders and hundreds of trade creditors have potential claims against Dewey that total $560 million, according to ex-partners who were briefed last week by the firm’s estate, the Journal reported.

Previously on monitordaily: Leasing Companies Owed $46.8MM in Dewey & LeBoeuf Bankruptcy, published June 1, 2012

To read the full Wall Street Journal story click here.

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