Tuesday May 29, 2012
The legal profession has been idolized in the media for years. Prominent tv shows have featured lawyers, always brilliant of course, as well as movies. The same is true for the series of Grisham novels.
Now however ther are law school grads suing their alma maters for not being able to find the big promsied job. And a couple of big law firms have gone belly up. Jenkins and Gilchrist was a prominent Texas law firm. It went under in a disastrous tax shelter service.
Dewey and Leboeuf LLP has filed for Chapter 11 bankruptcy protection. Half the partners left the first quarter as cash flow dried up. This law firm had liabilities in the range of $100-$500 M. One wonders why a law firm would be so deeply in debt.
We will study cash flow staements in class this summer. Apparently Dewey failed to do so.
Professor Elam 
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