The law firm Paul Hastings and two of its partners are expected to pay nearly $1.6 million to the estate of Dewey & LeBoeuf in exchange for a release from potential litigation, Reuters reported yesterday. Under the settlement, the trustee for Dewey will not seek to recover profits on legal business that former partners brought with them to Paul Hastings, according to the filing that Dewey counsel Scott Ratner filed in court on Monday. The new deal follows the approval of Dewey's liquidation plan on Feb. 27 by Bankruptcy Judge Martin Glenn in which more than 450 partners agreed to pay $71.5 million in exchange for a release from potential lawsuits seeking to claw back compensation paid out before Dewey collapsed in May 2012. The $71.5 million settlement did not resolve the "unfinished business" claims, in which Dewey's estate could move to recover profits on legal business former partners took with them to their new law firms.
