Weil Gotshal partners approve wind-down as law firm prepares to cease operations
A partner vote formalises the closure of Weil Gotshal after a crisis triggered by high-profile defections from the nearly century-old law firm. The decision clears the way for the U.S. legal group to stop operating and shift oversight to a committee managing its shutdown, finances and outstanding obligations.
Highlights
- Weil Gotshal's partners approved a wind-down plan with 97% support, confirming last month's leadership decision to close the firm amid instability.
- Management transitions to a wind-down committee, including AlixPartners, as remaining lawyers accelerate client billing and plan vendor and lease payments.
- Partner departures, including Ramona Nee and her private equity team to Kirkland & Ellis, accelerate workforce dispersal from Weil's 1,200 lawyers and heighten dissolution pressure.
Closure plan and wind-down process
As reported by Financial Times, 97% of partners back the plan to wind down the firm, according to people with knowledge of the matter. The vote confirms a decision by Weil's leaders last month to close the business after a period of mounting instability.The firm is set to cease operations, with management due to pass to a wind-down committee that includes general counsel Robert Carangelo, tax department chair Paul Wessel and a representative from consulting firm AlixPartners. Weil hires AlixPartners to help manage its books as the shutdown proceeds.
Remaining lawyers are racing to send invoices for client billings to collect as much cash as possible in the near term. The debt-free firm is also preparing to pay trade vendors and work through lease issues, including at its New York headquarters opposite Central Park.
Fallout across the legal sector
The closure marks a sharp reversal for a firm that until recently ranks among the biggest and most prestigious in the U.S. legal market. Its collapse follows the exit of several key partners to rivals, underscoring how vulnerable even large and long-established law firms can be when top rainmakers depart.Weil has about 1,200 lawyers in the run-up to its collapse. Since the wind-down plan is confirmed two weeks ago, the remaining lawyers have been dispersing to other leading firms.
Ramona Nee, who is due to take over the firm's leadership from January but decides months ago that she no longer wants the role, is moving with a large team of private equity lawyers to Kirkland & Ellis. The departures add to the pressure on Weil's remaining operations as it works through the final stages of dissolution.
We have also looked at commission partner liability after Malaysia’s Court of Appeal held such partners can be liable for firm debts under the Partnership Act 1961.
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