What is going on at Dewey & LeBoeuf? It’s a questions that’s been on many legal lips of late, particularly with reports that the firm has defaulted on payments to former parments and on a required ERISA deposit. So what is happening to the big-name firm?
A report from AbovetheLaw recently reported the allegations of late payments but there are also been reports of Dewey partners who are looking to rapidly join other firms as laterals. Is Dewey some kind of sinking ship, or is this loose talk?
AbovetheLaw report: “We’ve also heard scattered reports of layoffs affecting associates and counsel. These reports have been lacking in specificity, though, and it’s not clear that any cuts are being made outside the ordinary course of business. (If you have detailed information, please email us, subject line “Dewey layoffs.”)
The Daily Journal also commented: “Leaders at Dewey & LeBoeuf LLP had to significantly reduce compensation for some mid-level business generators and have continued, despite growing controversy, to pay guarantees to higher-ranking rainmakers at the firm, according to several sources inside and outside of the firm.”
Certainly Dewey partners have been departing the firm with some speed, indicating major issues with compensation or otherwise.
As the Daily Journal continues:
“The decisions came after the New York firm has not yet paid some partners compensation dating back to previous years because of guarantees that had to be paid out to high ranking partners the firm couldn’t afford, according to three recruiters and consultants.
Two sources knowledgeable of the firm’s finances said Dewey currently has come up significantly short — more than $50 million — on compensation the firm owes to partners. Three sources say partners within the firm are expressing concern over whether Dewey can afford to keep paying certain rainmakers lucrative guarantees.”
And so the watch on Dewey continues unabated as this appears to be a scene with a rapidly changing cast and sequence of disturbing law firm events.