Thursday, July 12, 2012
The Wall Street Journal reported that as part of a settlement with creditors, former partners of belly-up Dewey & LeBoeuf law firm will be asked to give back amounts ranging from $25,000 to $3,000,000. This "clawback" offer doesn't seem to be an offer yet - the creditors haven't signed off on it. Maybe a better way to look at it is as an offer by the firm to the ex-partners which, if accepted, would be offered to creditors. Would it be a conditional offer? Or maybe two separate offers (firm to ex-partners and then firm to creditors?) Maybe a contract/release signed by all three groups? (most likely scenario, but I'll stop obsessing over the contract formation issues now....) The article reports that those ex-partners who fail to sign on to the plan "could end up on the hook for millions of dollars of Dewey's debt." That's a lot of billable hours.