Steve Davis, former chairman of Dewey & LeBoeuf, has offered to pay over half a million dollars to settle claims against him following the firm’s collapse last year.
Davis has agreed to pay $511,145 in the form of a promissory note to the firm’s liquidation trust, after Dewey became the largest law firm in US history to file for Chapter 11 bankruptcy last May.
The firm’s insurance company, XL Speciality Insurance, which held the firm’s management liability policy, has agreed to pay $19m in the proposed settlement.
The settlement, which will insulate Davis from further claims, requires a judge’s approval and a hearing is scheduled for 13 May.
‘Mr. Davis is pleased with the settlement, which is a practical resolution for all concerned.’
‘Mr. Davis is pleased with the settlement, which is a practical resolution for all concerned,’ said Kevin Van Wart, a litigation partner at Kirlkland & Ellis, who represented Davis throughout the proceedings.
If approved the agreement, which was reached in the Bankruptcy Court for the Southern District of New York this week, will mean Davis pays less than other former Dewey partners.
Brown Rudnick represented Dewey’s liquidation trustee and argued that the benefits of the proposed settlement outweigh the benefits of proceeding to litigation.