Dewey Partner Settlement Approved, Judge Rejects Ex-partners Request for Independent Examiner
In a major development in the Dewey bankruptcy story, Judge Martin Glenn has approved a $71.5 million settlement for various parties involved in the case. This is the single largest recovery to date for the firm's creditors. This is also one of the fastest resolutions with respect to a law firm of this size that has been declared bankrupt.
Lenders, Dewey's bankruptcy advisers and most creditors seem to be onboard with the ruling but ex-partners who claim to have lost millions in lost pension payments are planning to appeal the decision. This group wanted an independent examiner appointed to examine the reasons for the firm's collapse.
But Judge Glenn shot down this proposal and said in his ruling "From early on in this case, it has been clear that the Ad Hoc Committee intended to do whatever it could to scuttle any proposed PCP. The Examiner Motion has been the main tactical choice of the Ad Hoc Committee to try to derail the PCPs..."
Annette Jarvis, a lawyer for an ad hoc committee of retired partners, in an email to the Wall Street Journal Law Blog has said: "The sordid facts underlying the Dewey & LeBoeuf demise cry out for investigation by an independent examiner. The Court's attribution of improper motives to the retirees who brought the motion adds insult to injury."