Dewey & LeBoeuf Said to Be Subject of Pay Probe by Manhattan Prosecutor

By Tiffany Kary – Apr 27, 2012 12:53 PM ET

Dewey & Leboeuf LLP, the New York- based law firm fighting to stay alive after more than 70 partners departed, is the subject of a criminal investigation by Manhattan District Attorney Cyrus Vance Jr. into whether managers misled partners about payments due to them, a person familiar with the matter said.

Dewey & LeBoeuf, the No. 3 law firm adviser to banks handling merger deals, is nearing an April 30 deadline to show bank lenders it has a survival plan, possibly including absorption by another firm or cost-cutting.

The state prosecutor’s investigation is in a preliminary stage and has yet to determine whether a crime has been committed, said the person, who declined to be identified because the matter isnt public.

To contact the reporter on this story: Tiffany Kary in New York at tkary@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net