Distressed law firm Dewey & LeBoeuf seems to find itself in a deepening crisis. Not only does it have to renegotiate its line of credit by the end of this month. Now, reports Bloomberg, according to a source, Manhattan District Attorney Cyrus Vance could launch an investigation. That would probe if the law firm misrepresented to partners that amount of money due them. Already about 72 partners have left the firm.
From what we have analyzed about the overall situation, it appears that the law firm has been mismanaged. But criminal problems could present the tipping point at which it can't put together a survival business plan that reasonable funding sources would take seriously.