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.
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.