Distressed law firm Dewey & LeBoeuf has become the subject of nonstop news coverage. The latest installment is from Bloomberg which reports two developments.
One is that merger talks are over with Greenberg Traurig. However, there are others going on with a number of firms.
The second is that former chairman Steven Davis is no longer a member of the newly formed five-member office of the chairman or the executive committee. Sources have indicated that Davis is at the center of a probe, both internal and by the Manhattan District Attorney, concerning possible fraud in how information about repayment on a loan from Barclay Bank was reported to partners during 2011.
As many already know, last week the deadline on renegotiating the line of credit was extended from April 30 to May 7. The macro question is if the law firm can survive. Bloomberg notes that it will be business as usual Monday at Dewey & LeBoeuf.
This is a story of the possible collapse of a top law firm which is sending shudders throughout all professional services.