At least 11 lawyers announced departures from New York law firm Dewey & LeBoeuf LLP yesterday, pushing the total to more than 80 in recent months, as the firm continues to work toward an agreement with banks about the deadline for a line of credit.
Former Dewey & LeBoeuf LLP billing and accounting managers were among seven ex-employees who agreed to plead guilty and cooperate in the probe of a $200 million fraud that spurred the largest law firm bankruptcy in history.
Dewey & LeBoeuf LLP partners whose guaranteed contracts undermined the firm may get about a dime on the dollar for what they’re owed, no better than the janitors who cleaned their offices, bankruptcy specialists said.
Dewey & LeBoeuf LLP, whose bank loans are partly secured with money due from clients, told partners they can’t have their monthly pay until they send all the bills for their services, a person familiar with the matter said.
Morrison & Foerster LLP announced leadership changes, appointing San Francisco partner Brandon Parris and Tokyo partner Randy Laxer as co-chairmen of the corporate department and New York partner Gary Lee and Tokyo partner Dale Caldwell to lead the finance group.