A deal has been put to former partners of Dewey & LeBoeuf which could get them off the hook for the firm's collapse - but at a serious price.
The deal was originally suggested a couple of weeks ago. In essence, if enough partners agree to put their hands in their pockets and write a cheque to the firm's estate, the court will rule that they can't be sued by creditors. So the creditors would get at least some of their money back quickly, and the partners can all get on with their lives. Well, all except the firm's former Chairman Steven Davis, who is excluded from any deal and still remains liable to having his pants sued off.
Terms were put to partners on Wednesday, according to The Lawyer. Those signing up will pay between 10% and 30% of their total remuneration for 2011 and 2012, which could be an awful lot once their deferred payments are taken into account. The amount paid is capped at $3m per partner, although the most junior partners will be asked to contribute a rather more wallet-friendly $25,000.
Partners have until 24th July to consider the deal.
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The deal was originally suggested a couple of weeks ago. In essence, if enough partners agree to put their hands in their pockets and write a cheque to the firm's estate, the court will rule that they can't be sued by creditors. So the creditors would get at least some of their money back quickly, and the partners can all get on with their lives. Well, all except the firm's former Chairman Steven Davis, who is excluded from any deal and still remains liable to having his pants sued off.
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Dewey yesterday |
Terms were put to partners on Wednesday, according to The Lawyer. Those signing up will pay between 10% and 30% of their total remuneration for 2011 and 2012, which could be an awful lot once their deferred payments are taken into account. The amount paid is capped at $3m per partner, although the most junior partners will be asked to contribute a rather more wallet-friendly $25,000.
Partners have until 24th July to consider the deal.