Home

Former Dewey Partners React to Settlement Proposal
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

After news of the proposed settlement of $104 million that Dewey is seeking from former partners hit the market reactions have hardly been favorable. The former partners of Dewey are in a fix, as they have few encouraging options.

In Wednesday’s meeting, Joff Mitchell, the chief restructuring officer for Dewey told the former partners in no uncertain terms that if the deadline of July 24 made by the firm’s bankruptcy officers is not met then the proceedings could be converted to Chapter 7 instead of Chapter 11. This would lead to the appointment of a trustee empowered to seek clawbacks aggressively from former partners as part of the liquidation. Also, those former partners who fail to settle by July 24 may have to pay a 25 percent penalty. On the other hand, not settling would mean long years of litigation.

Mark Zauderer, a lawyer who represents 57 Dewey partners told Reuters, “From what I’ve seen, the numbers are not generating enthusiasm.” According to the clawback plan, 709 former partners have been asked to give back a portion of the $455 million the firm distributed to them since 2011. Former partners are receiving emails with individual demands ranging from $25,000 to $3 million from Wednesday night.

  
What
Where


A former partner reported that the demand made on him was at least $50,000 more than what he thought he owed, and it would delay his retirement by at least four years. He said, “My view is there’s nothing less desirable than having this drag out for years … I’m willing to pay a lot of money to have this go away.” He’s ready to pay up, because he wants to move on, even though he knows he’s paying extra.

However, the case is not the same with many others. At least one former partner said “I have all the records, and I can prove what I got … It’s not so much the money. It’s the ridiculous nature that they can’t get it right.” This partner believes he is being charged at least $500,000 more than what he owed the firm.

Some, of course, see foul play even while Dewey is in the last throes. Zauderer said that the estate is yet avoiding the pursuit of about $18 million in payments made to only certain partners before applying a formula to everyone. This was done as a special distribution in 2012.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




According to its bankruptcy advisors, the firm has to collect at least $50 million by July 24 in order to proceed with the settlement with former partners.





 

RELEVANT JOBS

Paralegal / Legal Assistant

USA-NY-Staten Island

STATEN ISLAND PLAINTIFFS PERSONAL INJURY LAW FIRM IS SEEKING A FULL TIME/PART TIME PARALEGAL/LE...

Apply now

Attorney

USA-WA-Walla Walla

When the COVID crisis hit our state, we continued serving clients in our community. We are...

Apply now

Associate Attorney

USA-FL-Orlando

A/V Rated Downtown Orlando Law firm of Fisher Rushmer, P.A. is seeking an associate with 2 - 6 years...

Apply now

Legal Extern / Litigation Law Clerk

USA-VA-Alexandria

Old Towne Associates, P.C. (Alexandria, VA) Legal Extern Openings - Class of 2021 and 2022 ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mergers and Acquisitions Associate Attorney

USA-CA-San Diego

San Diego office of a BCG Attorney Search top ranked law firm seeks Mergers and Acquisitions Associa...

Apply Now

Senior Wealth Management Group Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Wealth Management Group Associate Attorney with 9 years ...

Apply Now

Bankruptcy Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search top ranked law firm seeks Bankruptcy Associate Attorney ...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top