The criminal trial of three former Dewey & LeBoeuf executives in the US has ended in a mistrial after four months of hearings.
The Supreme Court judge accepted jurors’ claims they could not reach a unanimous decision on Monday (19 October).
The mistrial was declared yesterday following the failure by jurors to reach a verdict on more than 90 counts including charges of grand larceny after a month of deliberations.
Prosecutors have already raised the possibility of a new trial, with the office of the Manhattan district attorney issuing a statement that read: “We continue to believe in the strength of the evidence and that the defendants’ actions broke state law”.
The news comes just weeks after former Dewey chair Steven Davis, former executive director Stephen DiCarmine and former chief financial officer Joel Sanders were cleared of multiple criminal charges relating to claims they falsified records that led to the largest collapse of a law firm in history.
The trio faced a maximum 25-year sentence each if convicted on grand larceny charges.
The case, which launched in June, accused the executives of committing criminal fraud and altering accounts in a bid to prevent the firm going into administration.
Morvillo Abramowitz Grand Iason & Anello lawyer Elkan Abramowitz is acting for Davis, Bryan Cave partner Austin Campriello for DiCarmine, and Hughes Hubbard & Reed securities litigation co- chair Edward Little for Joel Sanders.
A parallel trial in the UK of four ex-Dewey partners against Barclays Bank concluded in June, with three partners settling and one, Londell McMillan, ordered to repay a £352,000 capital loan to the bank following a High Court ruling.
Barclays launched the High Court litigation in order to recoup money from partners of the now defunct firm, which collapsed in May 2012. When Dewey folded, more than 200 partners owed Barclays Bank around $60m (£39m), which they had borrowed to fund their equity contributions to the firm and which had been lost in the firm’s bankruptcy.
Barclays is seeking over $15m from 50 former partners in repayment of capital loans granted to them before the collapse.