Giant law firm bites the dust.
New York-based Dewey & LeBoeuf, one of the nation’s most prestigious law firms, filed for Chapter 11 on Monday night, making it one of the largest law firms to collapse in US history.
On Monday the international law firm announced its plans to liquidate and according to the New York Times, the company is expected to retain 90 employees to assist in the shutting down of its business. At one point, the practice employed well over 1,000 lawyers worldwide. Court filings indicate that the firm has roughly $315 million in liabilities and of that amount $225 million remains unsettled to banks.
Dewey was plunged into a deep freeze for sometime after its profits and debts took an unexpected turn. The Times reports that the corporate law firm was paying its lawyers more than it could actually afford. Adding to the increase pressure, the firm was trying to regain financial traction and stability after the Dewy Ballantine and LeBeouf, Lame Greene & McRae mega merger in 2007.
Despite its financial issues, the firm experienced its fair share of legal success, however. It represented business tycoon Mark Cuban, owner of the Dallas Mavericks, against SEC allegations of insider trading. The firm also provided counsel to MetLife in its $12 billion acquisition of Travelers Life and Annuity.
