As it continues hemorrhaging money and partners, massive New York law firm Dewey & LeBoeuf got an extra bit of bad news on Friday. It is being investigated by Manhattan District Attorney Cyrus Vance. As Bloomberg reported yesterday:
Prosecutors, tipped by disenchanted Dewey partners, are probing whether some attorneys were wrongly shut out of pay as the firm’s profits shrank while others received guaranteed packages.
A source familiar with the probe told Reuters that the D.A.'s office is particularly interested in former chairman Steven H. Davis and whether or not he made misleading statements about payments due to partners, 70 of whom have already defected from the firm since January. And if that's not dire enough, Dewey & LeBoeuf faces a deadline tomorrow to prove to creditors — who've so far lent it nearly $100 million — that it has a leg to stand on. If it doesn't, then maybe bankruptcy will come a-knockin'.