Ex-Dewey chief Davis to pay $500k settlement to resolve claims

Former Dewey & LeBoeuf chairman Steve Davis is set to pay $511,145 (£335,000) to the defunct firm’s liquidation trust to resolve claims against him in relation to the US outfit’s dramatic collapse last year.

Steve Davis
Steve Davis

Davis has reached a settlement with the liquidation trustee under which he will pay his standard contribution to the partner contribution plan (PCP), a deal reached with ex-partners to resolve them of liability.

The firm’s former leader, who was originally excluded from the PCP, will provide a promissory note for the amount to cover claims for which he was not insured.

Meanwhile, XL Specialty Insurance Company will also pay $19m (£12.5m) to cover mismanagement claims against insureds including Davis.

Under the PCP, partners paid in an amount of money determined by their profit distribution and other income received in 2011 and 2012. The deal won court approval in October (10 October 2012).