Thursday, October 11, 2012
US bankruptcy judge Martin Glenn recently approved the US firm Dewey & LeBoeuf's settlement with former partners. The settlement involved a Partner Contribution Plan that asked ex-partners for a contribution to the estate in exchange for being absolved of future liability. The settlement raised over $70 million for the estate, and partners who contributed were ranted a broad release from liability. That release does not include claims made under the unfinished business doctrine or against claims made by third parties against partners who have signed up or the firm's insurance policies.
The process to approve this plan has been going on since the firm went under at the end of May 2012. Comparatively, however, the resolution has been a speedy one.
See Joshua Freedman, Dewey Finally Gets Go-ahead for Partner Settlement, The Lawyer, Oct. 10, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.