Dewey & LeBoeuf Files for Bankruptcy

The famous New York law firm Dewey & LeBoeuf filed for bankruptcy Monday night—the largest law firm to collapse in U.S. history. The firm, which dealt in corporate law, at its peak employed 2,500 people, including 1,400 lawyers in 26 offices around in the world. Dewey’s roots go back more than a century, but the firm was officially created in 2007 when Dewey Ballantine and LeBoeuf, Lamb, Greene & MacRae merged to form one of the largest law firms with a powerful global business. But since then the firm had disappointing profits and had to slash partners’ salaries—causing a mass exodus of talent, destroying the firm. The firm currently has $315 million in liabilities, of which $225 million is owed to banks.