The leader of Weil Gotshal & Manges' capital markets group told junior lawyers to look for employment, underscoring the firm's perilous state as it consults with a restructuring lawyer. Alex Lynch communicated the news to associates in a group meeting Tuesday, according to a person familiar with the announcement. He said the associates will remain employed for the time being and will continue to work on client matters, but offered no specific timeline on their tenure. Lynch and Weil did not respond to a request for comment.
The firm's future is uncertain after a string of partners departed, at least in part because of a lack of confidence in Weil's leaders. Last month, corporate department chairman Michael Aiello moved toward an exit for rival Cravath, and firm partners learned last weekend that incoming Weil leader Ramona Nee has decided not to take the job. Davis Polk & Wardwell lawyers, including restructuring partner Brian Resnick, are advising Weil as it assesses its future, two people familiar with the matter said.
The storied New York-based firm, with more than 1,200 lawyers and $2 billion in revenue, has long been one of the US's premier legal operations. It is renowned for its bankruptcy practice, having acted as lead debtors counsel to Lehman Brothers Holdings Inc and Enron Corporation. It was also an M&A powerhouse, led by Aiello, who represented Fox Corp. on its $22 billion acquisition of Roku Inc.
Aiello's departure, along with others, prompted the firm to explore its options, including a possible merger with another Big Law firm. However, merger talks with Willkie Farr & Gallagher fell through last week, raising questions about whether dissolution is the inevitable option.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing