Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Pathology of Failed Law Firms
As of this writing, Dewey & LeBoeuf LLP filed for bankruptcy protection on May 28, 2012 and is closing its doors. After trying to cheat death by running through an elixir of mergers, lateral hires, and guaranteed contracts, it was not able to sustain viability as an international law firm that once boasted more than 1,300 lawyers in 12 countries. It failed to consider the consequences of its growth, visions of Bali Ha'i, and incompatible cultures. Overstated financial results didn't help matters either. (Dewey says that its numbers, which were restated by The Am Law Daily, were and are accurate and are due to methodological differences.) From January through April, the firm has lost over one-third of its 300 partners amid a confluence of issues including a mounting debt crisis. As a last ditch effort Dewey tried and failed to find a merger partner. Most of the remaining partners left in May.
As of the filing date, Dewey's Statement of Assets and Liabilities revealed a negative net-worth of $52 million. This figure does not include “fee” accounts receivable (which rapidly declines in value after the filing); work-in-progress (that will need to be collected by the bankruptcy trustee from other law firms); or contingent liabilities (e.g., facility leases). One can easily see that the partners will be subject to clawbacks, and an experienced bankruptcy trustee will attempt to clawback partner distributions from not only 2011 but also 2010 and earlier years.
The stories of its downfall continue to evolve; however the speed with which this downfall occurred was astonishing, leading many, including me, to believe that chinks in Dewey's armor had begun to appear during the past two years if not longer. The speed of Dewey's decline also shows how fragile seemingly strong law firms are.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.