Dewey & LeBoeuf files for bankruptcy

TRD New York /
May.May 29, 2012 08:30 AM

Dewey & LeBoeuf filed for bankruptcy yesterday, the New York Times reported, more than two months after reports first emerged that the huge law firm, with one of the largest real estate practices in the city, faced financial distress. Filed in federal bankruptcy court in Manhattan, the bankruptcy calls for the firm to keep 90 employees on staff to assist in the liquidation of the business. At its peak, the firm employed more than 2,500 people in 26 global offices. The firm has $315 million in liabilities, $225 million of which is owed to banks.

The filing winds down a tumultuous year for the firm, that has seen a mass exodus of its top legal talentincluding Stuart Saft, the firm’s former global head of real estate — as it became clearer they wouldn’t be paid millions of dollars of compensation they were owed.

The struggles of the firm have been traced to the merger between Dewey Ballantine and LeBoeuf, Lamb, Greene & MaCrae in 2007 and the subsequent financial crisis.

“Because the partnership lacks any shared cultural values or history, money becomes the core value holding the firm together,” said William Henderson, a law professor at Indiana University who studies law firms. “Money is weak glue.”

Legal experts quoted by the Times said the downfall of such an influential firm is “unprecedented.” [NYT]


Related Articles

arrow_forward_ios
227 Grand Street in Williamsburg and Michael Lichtenstein of Heritage Equity Partners (Credit: Google Maps, Heritage Equity Partners)

It’s bankruptcy time for Michael Lichtenstein LLC in Williamsburg

Barney's at 660 Madison Avenue with Ashkenazy Acquisition Corporation's Daniel Levy (Credit: Getty Images, LinkedIn)

Barneys’ flagship Madison Avenue spot will stay open — but with a smaller footprint

(Credit: iStock)

It’s over for Barneys: Luxury retailer to be sold, stores closed

Forever 21 owes these five mall owners $20.9 million, bankruptcy court records show.

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

Blackstone President and COO Jonathan Gray and Stearns Lending CEO David Schneider (Credit: Getty Images)

Blackstone-backed mortgage lender Stearns files for bankruptcy

One Bennett Park

Going once, going twice? Hudson Heights development site auction is back on

From left: Topshop and Topman stores at 478 Broadway, Arcadia Group CEO Philip Green, and Vornado CEO Steven Roth (Credit: Getty Images and Google Maps)

US landlords say Topshop owner is freezing them out amid bankruptcy

Clockwise from left: 119 Rogers Avenue, 325 Franklin Avenue, 53-55 Stanhope Street and 73 Empire Boulevard (Credit: Google Maps)

Amid fraud case, a bevy of Brooklyn properties end up in bankruptcy court

arrow_forward_ios
Loading...