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Dissolving Thacher Proffitt & Wood is pursuing its former first-year associates over money provided for bar expenses.
The firm’s dissolution committee and bank are going after the former associates for repayment of salary advances issued last year to cover their bar and start up expenses.
Omer “Jack” Williams, a former Thacher managing partner who chairs Thacher’s seven-member dissolution committee, says associates knew the money was a loan when they took it. “In the exit interviews, we made it clear we anticipated they would pay their loans back,” he said.
Perhaps when the associates joined the firm, they made it clear they expected to be employed so they could pay the money back.
Williams says the committee hasn’t taken any legal action to collect the loan balances and hasn’t discussed what it will do if associates don’t pay.
Thacher, which had nearly 200 lawyers firmwide, was forced into dissolution in December, before the new associates had a chance to fully repay the loans out of their salaries.
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Latham & Watkins, which last week laid off 190 associates firmwide, will not seek to get back the bar stipend it paid associates.
DLA Piper also isn’t requiring recently laid-off associates to pay back salary advances.
Bankrupt Heller Ehrman also won’t pursue repayment.
