Reuters: Regulatory News: UPDATE 1-U.S. law firm Dewey warns of impending layoffs

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UPDATE 1-U.S. law firm Dewey warns of impending layoffs May 4th 2012, 22:46 Fri May 4, 2012 6:46pm EDT By Nick Brown NEW YORK May 4 (Reuters) - U.S. law firm Dewey & LeBoeuf notified U.S. attorneys and staff on Friday of impending mass layoffs, a source close to the firm said - the starkest sign yet that Dewey could be on the verge of collapse. The firm issued the notification letters under federal and state laws that require employers to notify workers of mass layoffs in advance, according to the source, who spoke on condition of anonymity. Angelo Kakolyris, a spokesman for the firm, declined immediate comment. The letter to employees, obtained by Reuters, said: "Although we continue to pursue various avenues, it is possible that adverse developments could ultimately result in the closure of the firm, which would result in the termination of your employment." The letter said it served as notice under the federal WARN Act and similar state and local laws. The federal WARN Act requires employers with 100-plus employees to give them 60 days' notice, while New York's WARN Act requires employers with 50 or more workers to give at least 90 days' notice. "Although we continue to pursue various avenues, it is possible that adverse developments could ultimately result in the closure of the firm," the letter said. Dewey & LeBoeuf, once one of the biggest law firms in the United States, has been struggling this year with growing debt, declining revenue and partner defections. Earlier on Friday, another source close to the situation said that Dewey & LeBoeuf had dismissed Executive Director Stephen DiCarmine within the last week. DiCarmine has retained a prominent criminal defense lawyer, the source said. Last week, the firm informed its partners that the New York District Attorney launched an investigation into allegations of wrongdoing by former Chairman Steven Davis. No allegations of wrongdoing have been brought against DiCarmine. The reasons for his termination couldn't be determined. Davis has denied any wrongdoing and DiCarmine did not return phone calls seeking comment. DiCarmine has hired Edward Little, a former federal prosecutor in Manhattan, according to the source, who declined to be named due to the sensitivity of the matter. Little, a partner at law firm Hughes Hubbard & Reed, declined to comment on whether he had been hired in connection with the DA probe. Since January, the firm has lost some 120 of its 300 partners amid a mounting debt crisis. It has tried and failed to find a merger partner. Defections from the firm spread oversees Friday, with a wave of departures in Britain, Germany, Kazakhstan, UAE and Russia. Link this Share this Digg this Email Reprints

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