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News: Dewey Abruptly Lays Off 450 Employees

Employees stunned, as Dewey lays off 450 of its staff today. The firm had already shed more than a third of its partnership since the start of the year.

Pummeled by a heavy debt load due to an aggressive expansion strategy, the core of Dewey’s financial problems were brought upon the firm by the multiyear, multimillion-dollar guaranteed-pay packages that were given to its top lawyers and star recruits.

According to recent news reports, a bond offering by Dewey & LeBoeuf did not disclose the extensive guarantees that it gave to partners, an omission that could subject the law firm’s partners to litigation.

Additionally, a lawsuit filed by one Dewey's affected employees in federal district court in Manhattan, accuses the firm of violating federal and state laws requiring employers to give their employees advance written notice of their termination.

Watch the Bloomberg video in the sidebar for more background information provided by former partner Stuart Saft.

——More information——

New York Times - More Top Lawyers Leave Dewey & LeBoeuf

Wall Street Journal - Lawsuit: Dewey Lays off 450 Employees

Bloomberg Law - Dewey Ex-Partner: Headhunters and Media Tanked the Firm (Video on the left)

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CNN - Dewey's decline and the rise of high-risk Big Law