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Dewey & LeBoeuf, New York Law Firm, Files for Bankruptcy

 

Dewey & LeBoeuf, the New York law firm crippled by financial miscues and partner defections, filed for bankruptcy on Sunday night, punctuating the largest law firm collapse in United States history.

 

The filing, made in Federal Bankruptcy Court in Manhattan, marks the final chapter in a turbulent period for the New York-based Dewey, which unraveled after disappointing profits and prodigious debt forced it to slash partners’ salaries. The partners, already owed millions of dollars from prior years, grew concerned over the firm’s finances and their ability to get paid. A partner exodus destroyed the firm.

 

“This is a very sad day for the legal profession,” said Richard J. Holwell, a former federal judge in Manhattan now in private practice. “Dewey is a fabled firm with a lot of great lawyers and a demise of this magnitude is unprecedented.”

 

Read More: http://dealbook.nytimes.com/2012/05/28/dewey-leboeuf-files-for-bankruptcy/?hp&emc=na

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 A partner exodus destroyed the firm.

 

 

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That is the risk with private companies.  I agree with Prashad - I have never seen this before.

You don't have to read John Grisham to figure out that law firms are legalized criminals and vultures. The ridiculous salaries of partners do not merit the services they perform. Expect more to fail as the economy falters.

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