In the latest story about the travails of the recently-venerable global law firm Dewey & LeBoeuf, the New York Times says that for partners, losing their jobs "may be the least of their worries":
They are likely to lose the money they were required to invest in the firm. They could lose their pensions. They may have to give back money they have already been paid. And even if creditors eventually agree to accept a small portion of what they are owed, the partners may owe taxes on the forgiven debt.
Current and recently-departed partners are being advised to consult personal bankruptcy attorneys. Information about former firm chairman Morton A. Pierce, who resigned last week, illustrates the magnitude of the problem. According to the Times story, his resignation letter informed the firm that it owes him $61 million.
Meanwhile, retirees are facing the painful reality that the majority of their pensions are unfunded, that is, that the pensions have been paid out of revenues that no longer exist. And the plight of longtime assistants and administrative staff should not be forgotten.
For the intensely interested, WSJ Law Blog has a graphic showing where the Dewey partners have gone.