U.S. Bankruptcy Judge Martin Glenn approved on Tuesday a $71.5 million settlement between former partners of Dewey & LeBoeuf and the bankrupt law firm's estate.
The settlement requires former Dewey partners to pay portions of their compensation, ranging between $5,000 and $3.5 million individually, in exchange for a release from potential clawback claims. As of Tuesday, roughly 400 out of 670 former Dewey partners had opted into the settlement.
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Judge Glenn said the settlement is in the "best interest" of the Dewey estate and creditors because the deal ultimately prevents years of costly protracted litigation between Dewey's estate and former partners. Glenn said the settlement "will lead to a quicker wind-down in Chapter 11, and - more importantly - a quicker and more certain distribution to creditors."