The reputed New York law firm Dewey& LeBoeuf LLP is looking towards a rescue plan that may place the firm under bankruptcy protection. The Company is under the weather this year with a flurry of exits by partners and this may be their best option in preserving value for the prestigious law firm.
The leaders of Dewey & LeBoeuf LLP have approached law firm peers with a new proposition which will lead to the filing of a "prepackaged "bankruptcy plan. This will enable a merger partner to take up the law firm which would be free of mounting debts and unfunded pension obligations which form a substantial amount.
The final fate of Dewey's may hang by the balance, but it surely brings forward the gloomy picture of corporate law firms falling apart at the seams. The profits of the law firms have been negatively effected by the increasing popularity of legal outsourcing firms, the appointment of inexpensive contract attorneys by the Corporates, The decision of bringing in more in-house solutions by the organizations and clients demanding cheaper rates .The increase in competition with more qualified lawyers coming into the fray and online portals offering services globally along with a slump in the fortunes of law firms and corporate legal advisors, are the other reasons for the dismal scenario.
The partnerships that have suffered in the past few years are those of law firms such as Coudert Brothers ,Proffitt & Wood ,Howrey & Simon, Thacher, Jenkens & Gilchrist,Heller Ehrman,Thelen Reid,Brobeck, Phleger & Harrison and many more.

A Federal Appeals Court put forward many skeptical questions to counter the contention of Cigarette manufacturers like the Altria Group Inc, etc who stated that they should not be bound by the penalties imposed on a 13 year old case.

The companies wanted to file a petition to overturn U.S. District Judge, Gladys Kessler's order which gave the U.S. Food and Drug Administration authority over the industry as per 2009 law. In 2006 Kessler had ruled that the cigarette companies in the United States had been concealing the dangers of smoking for decades and brought them under the RICO (Racketeer Influenced and Corrupt Organizations) law. As per the applicable law, the advertisements and promotions for cigarettes would demand graphic representations of the dangers of smoking.

It was argued by the Attorney, Miguel A. Estrada , that the companies could not violate the law even if they wanted to, as the FDA had an oversight authority under the Family Smoking Prevention and Tobacco Control Act,2009.

The Companies -including Philip Morris USA, the largest tobacco maker of the United States has stated in the court filings that the 2009 law "eliminated any reasonable likelihood that defendants would commit future RICO violations," thus making the need for remedies like corrective statements moot."

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