The head of the Weil Gotshal & Manges group has asked his young lawyers to look for jobs, highlighting the firm’s perilous situation as he consults with a restructuring lawyer.
Alex Lynch, who heads Weil’s capital markets group, communicated the news to partners during a group meeting Tuesday, a person familiar with the matter said. He said the associates would remain employed for the time being and continue to work on client matters, although he offered no specific timetable for their tenure, said the person, who requested anonymity to describe Weil’s communications.
Lynch and Weil did not respond to a request for comment.
The firm’s future existence is uncertain after a litany of associates fled, at least in part because of a lack of confidence in Weil’s leadership. Last month, powerful Corporate Chairman Michael Aiello moved toward the departure of rival Cravath, and a wide swath of the firm’s partners learned last weekend that Weil’s new leader, Ramona Nee, had decided not to take the job.
Davis Polk & Wardwell attorneys, including restructuring associate Brian Resnick, are advising Weil in evaluating its future, two people familiar with the matter said Tuesday. Resnick is responsible for Davis Polk’s liability and special opportunities management practice.
The renowned New York-based firm, with more than 1,200 attorneys and $2 billion in revenue, has long been one of the nation’s premier legal operations. She is renowned for her bankruptcy practice, serving as lead legal counsel to the debtors of Lehman Brothers Holdings Inc and Enron Corporation. It was also a powerhouse of mergers and acquisitions, led by Aiello, who represented Fox Corp. during its acquisition of Roku Inc. for $22 billion.
The departure of Aiello and others prompted the firm to explore its options, including a possible merger with another large law firm. But merger talks with Willkie Farr & Gallagher collapsed last week, raising questions about whether a breakup is the inevitable option.
— With reporting by Roy Strom
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