Lawyers are finding that Brobeck’s dissolution is going to dog them for a while:
Partners may not only lose their capital contributions — typically worth hundreds of thousands of dollars — but could be forced to fork over additional money to pay off the firm’s current debt of approximately $55 million. In addition, partners also may face potential liability for claims made against the firm following its dissolution. [full article at law.com]
And from today’s Recorder, staff (who aren’t finding life post-Brobeck nearly so rosy as the former partners) are contemplating litigation:
Another employee said Brobeck management told staff on Jan. 30 — when it was announced that the firm was disbanding — that they would lose their unused vacation. While the firm extended health insurance for one month, the employee said coverage was not provided to those with pre-existing conditions.
Remaining employees expect to get their final paycheck when Brobeck closes down operations today. The checks will be given directly to employees rather than via direct deposit, the staff member said, since direct deposits of two weeks ago did not immediately clear and “a lot of people had bounced checks.” [full article from the Recorder]
Did you catch the quote from the first article that referred to risk as “Brobeckian”?