A federal judge in New York yesterday approved a settlement that requires the insurer and former chairman of defunct law firm Dewey & LeBoeuf to pay $19.5 million to resolve claims with a trustee that leaders mismanaged the firm, Reuters reported yesterday. Dewey once employed more than 1,200 lawyers in 26 offices worldwide, but last May it became the largest U.S. law firm to file for bankruptcy. Its demise has been largely attributed to compensation guarantees the firm made to a significant portion of its partners. The $19.5 million settlement resolves mismanagement claims against leaders of the New York law firm including former chairman Steve Davis. Davis has agreed to pay $511,145 and Dewey's insurer XL Specialty Insurance Company has agreed to pay $19 million to the firm's estate in exchange for a release from future litigation.
