London’s legal sector was today rocked by the biggest collapse of a law firm in US history as nearly 100 Dewey & LeBoeuf lawyers in the capital lost their jobs and major companies including Lloyd’s of London began the search for new advisors.
Dewey brought in revenues of $800 million (£510.2 million) last year. But more than 160 of its 300 partners have quit in the past few weeks as concerns grew about the firm’s heavy debt load and poor results last year forced it to cut pay.
Yesterday it filed for Chapter 11 bankruptcy protection in the US, seeking approval to liquidate its business, and in London, administrator BDO was bought in to wind up the company.
Today, BDO said Dewey’s remaining 96 staff at its Mincing Lane, City office had all been made redundant, bar a handful involved in the winding-down process.
The administration will also cause major headaches for Dewey’s former clients, who include Lloyd’s of London, eBay, General Motors and Novartis.
