EXPLAINER-What's next for law firm Weil Gotshal as it plans dissolution

Prominent US law firm Weil, Gotshal & Manges is winding down its operations ​and moving to dissolve, setting the stage for complex decisions involving ‌its ​lawyers, their clients and rival firms looking to capitalize on its downfall. Here are some of the next steps facing Weil in what would mark one of the largest-ever law firm dissolutions.

HOW DID WEIL COLLAPSE? In an abrupt turn, Weil's management committee recommended to partners in October that ‌the firm wind down in the coming months. The partnership voted on November 10 to move ahead and installed a three-person committee that will oversee the dissolution.

The 95-year-old Manhattan firm had long been a leading player in major corporate bankruptcies, deals and litigation, employing around 1,200 lawyers and generating more than $2 billion in revenue last year. But Weil faced mounting departures by key partners in recent months to ‌rival firms, creating a spiral of defections. Its situation worsened after merger talks with another law firm broke down in late October, and when private equity partner Ramona Nee backed away ‌from plans to succeed longtime Weil leader Barry Wolf.

WHAT HAPPENS TO THE LAWYERS? Rival law firms were already recruiting aggressively from Weil and fielding lawyer resumes before it crossed the tipping point. More than 30 partners left by October, including members of the firm's executive committee.

The hiring and job hunting have gone into overdrive as other firms compete for top remaining partners and hundreds of associates flood the legal hiring market at once. Already, large groups of Weil lawyers ⁠have left ​for or are planning to join Gibson, Dunn & Crutcher; ⁠Kirkland & Ellis; and Sidley Austin. As it announced its dissolution plan, Weil still had lawyers in 16 offices in the US, Europe, Asia, and large, well-regarded practices including restructuring, litigation and private equity.

The firm also employs hundreds of paralegals, technical experts ⁠and other staff. HOW WILL THE DISSOLUTION PROCEED?

The firm intends to wind down out of court and has hired restructuring firm AlixPartners, strategic advisory firm C Street Advisory Group, and legal counsel at Davis Polk & Wardwell to ​advise it through the process. A court-overseen bankruptcy process is not necessary if the firm remains solvent and able to satisfy obligations to its employees, landlords, lenders and others, ⁠legal experts said.

In 2023, law firm Stroock dissolved amid a wave of lawyer departures to other firms. The firm two years later announced a settlement with its major creditors, resolving its wind-down and asset distribution. Several other major firms in ⁠the ​past two decades filed for bankruptcy, including Dewey & LeBoeuf and Howrey.

WHAT OBLIGATIONS DOES THE FIRM HAVE? Weil's lawyers have professional obligations to continue serving their clients that they must balance as they take positions at other firms. Its current and recent clients include Apple, Goldman Sachs and Dow Chemical.

Oversight of the firm is now the responsibility of the wind-down committee: Weilgeneral counsel Robert ⁠Carangelo, leader of its tax department Paul Wessel, and Patricia Ferrari, an independent director. Wolf will serve as a consultant to the committee at least through the end of the year. Weil ⁠told its associates and staff they would continue ⁠to receive pay for 90 days and receive bonuses at the end of 2026. It was unclear what Weil may owe certain partners under the firm's partnership agreement.

Weil's real estate footprint spans 10 US cities and six international locations including its leased home in the General Motors Building ‌in Manhattan that lists more ‌than 500 lawyers.