[ by Melanie Gretchen ] Dewey & LeBoeuf executive partner Steven Horvath III had no choice but "to lay the cards on the table" for all associates and employees.  He sent an internal memo on Friday, telling them that the firm could close and they could lose their jobs.  With its number of options dwindling, the firm has begun to wind down operations, shutting the copy center and mail room, and bringing in job placement firms to advise employees. Actually, Friday’s notice was required of the firm under the Worker Adjustment and Retraining Notification Act - a federal law that requires 60 days’ notice before laying off a large number of employees.  It also marked the first acknowledgement from management of a possible dissolution, though partners were encouraged last week to seek greener pastures. Sinking Ship. Since its peak in 2007, after Dewey Ballantine LLP merged with LeBoeuf, Lamb, Greene & MacRae LLP (9/26/07), when the newly combined firm employed 1,300 lawyers, it has suffered setbacks.  Disappointing financial results and an onerous debt load led to unpaid partner commitments which, in turn, led to the recent exodus of more than 100 of its 300 partners.  Many of those whom remained have completed their moves to new employers. [refer to our WHO's News story, "Dewey & LeBoeuf Partners Told to Leave"]. Mr. Horvath, who could be seen smoking outside Dewey’s headquarters during the past week, replaced Stephen DiCarmine, a nonpracticing lawyer who had previously served in that role, who worked closely with former chairman Davis, currently under investigation for allegations of wrongdoing.  Mr. DiCarmine has retained criminal defense lawyer Edward Little, according to two people with direct knowledge of the matter, though he has not been accused of wrongdoing. Memo To U.S. Employees:

"To: All US Personnel

As you are undoubtedly aware, Dewey & LeBoeuf LLP has unexpectedly experienced a period of extraordinary difficulties in the last few days. Although we continue to pursue various avenues, it is possible that adverse developments could ultimately result in the closure of the Firm, which would result in the termination of your employment.

The attached letter provides more detail.

On behalf of the Firm, we want to thank you for your support and dedicated service.

Steve

Stephen J. Horvath Executive Partner Dewey & LeBoeuf LLP"

[Dealbook, 5/4/12]