The collapse came quickly. Weil publicly denied merger talks in September, then spent about a month negotiating with Willkie Farr before those talks ended. Ramona Nee, who was set to succeed Wolf after his 16 years leading the firm, declined the job and is reportedly considering a move to Kirkland & Ellis with 40 or more colleagues. Michael Aiello, the corporate chair and highest-paid partner, left for a rival, which started the exodus. By late October, partners were reportedly "frantically sending résumés" to other firms. An anonymous associate told Bloomberg Law that the management committee used insider information to negotiate deals that left associates behind. That allegation comes from a single source and has not been independently established. An adviser says the firm believes it can complete a solvent wind-down. Whether it will is not yet known.
For attorneys, the immediate watch item is the associate market. Recruiters say associates "don't have any leverage at this time," so expect hiring firms to move quickly and on favorable terms. Partner bidding wars, especially for Weil's bankruptcy group, are expected to continue. Track the Kirkland move, the progress of the wind-down, and any claims about how the management committee handled negotiations. Dewey & LeBoeuf, which filed for bankruptcy in 2012 in what was then the largest U.S. law firm collapse, is the comparison most often drawn. Experts note that Weil relied heavily on a few rainmakers, and a Yale law professor has pointed out that partner pay can be clawed back in bankruptcy, which makes a fast wind-down more attractive. The story is drawing attention because a firm of this size collapsed this abruptly outside a recession, and it has renewed debate about Biglaw's dependence on star partners.