Daily News: August 31, 2012

Dewey Asks Court to Approve $70 Million ‘Clawback’ Plan

The Wall Street Journal reported that failed law firm Dewey & LeBoeuf has asked a judge to greenlight a $70 million “clawback” settlement with former partners that, if approved, would represent the first major recovery for creditors in the largest U.S. law firm failure to date.

According to the Journal story, more than 400 ex-partners have agreed, in exchange for immunity from most future lawsuits, to give back about 16% of the approximately $432 million in payments they received in 2011 and 2012.

The Journal noted that an ad-hoc group of retired partners from the LeBoeuf side of the firm, which opposes the plan, has asked the court to appoint a trustee or examiner.

To read the Wall Street Journal story, click here.