Dewey & LeBoeuf Bankruptcy Filing Marks Biggest Law Firm Collapse In U.S. History

by Joel R. Glucksman on June 5, 2012

Law firm Dewey & LeBoeuf filed for Chapter 11 protection under bankruptcy law this week, a move that will be followed by liquidation and represent the single largest collapse of a legal firm in the history of the United States.

The firm cited several reasons for its collapse, including the economic downturn, excessive compensation, climbing debt and, most recently, the loss of the majority of its partners. The mass exodus of partners after the firm warned it might shut down led to a significant drop in revenue, which created a domino effect of even more partners defecting.