Judge approves Dewey partner contribution plan


By James Barnes

10 October 2012 at 13:04 BST


A US bankruptcy judge has approved a $71.5 million settlement plan for former partners of defunct New York law firm Dewey & LeBoeuf.

New York: Dewey settlement gets green light

The Am Law Daily reports that the agreement marks the first instance of a major law firm resolving claims against a majority of ex-partners within months of dissolving.

'Litigation tactic'

In making his ruling, bankruptcy judge Martin Glenn shot down claims from two groups of retired partners to appoint an examiner to review the settlement, stating that the motion ‘was filed for an improper purpose as a litigation tactic to try to derail approval’ of the plan.
Around 450 ex-partners are on board and will make payments of between $5,000 and $3.7m to the firm’s estate. They  will receive a waiver against most Dewey-related liability. However, the report claims that the plan does not protect against law suits brought by third parties, or ex-partners who do not participate in the plan.

 
   
 
 
 

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