Dewey & Leboeuf LLP, the New York law firm fighting to
stay alive after more than 70 partners left, is the subject of a criminal probe
by state prosecutors into whether managers misled partners about payments due
them, a person familiar with the matter told Bloomberg..
Manhattan District Attorney Cyrus Vance Jr.’s investigation
is in a preliminary stage, said the person, who declined to be identified
because the matter isn’t public. Prosecutors, tipped by disenchanted Dewey
partners, are probing whether some attorneys were wrongly shut out of pay as
the firm’s profits shrank while others received guaranteed packages. Vance
seeks to ensure documents and other evidence is preserved ahead of any
bankruptcy, merger or dissolution, the person said.
Dewey, the No. 3 law firm adviser to banks handling merger
deals, faces an April 30 deadline to show lenders it has a survival plan,
possibly including absorption by another firm or cost-cutting...
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