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Nationwide Dissolution Watch: Is Morgan & Finnegan Bouncing Checks?

Morgan Finnegan intellectual property IP law.jpgIn August, we reported on significant layoffs at Morgan & Finnegan. Two and a half weeks ago, we told you that Morgan & Finnegan would be dissolving with survivors going over to Locke Lord.

Thanks to the recent dissolution of Heller Ehrman, Thelen, and Thacher Proffitt, we have learned what to expect as a firm shuts its doors. Employees are supposed to have sixty days of paid warning, under the WARN Act.

But what is the use of a severance check if there is no money in the bank? Morgan & Finnegan employees are finding out. Last week, a tipster reported:

Morgan & Finnegan severance checks were sent to fired employees. They were drawn on an account that is frozen. The checks are not good. The signature is illegible.

At the time, we thought this was a minor clerical error. But yesterday, ATL received additional confirmation that Morgan & Finnegan employees are having trouble getting paid. Details after the jump.

Other sources at Morgan & Finnegan are also reporting that the firm is issuing bad checks:

M&F … can’t even pay the attorneys and staff they laid-off the first 2 weeks of WARN payments otherwise known as severance/ pay in lieu of notice. Their checks are bouncing all over the tri-state area.

Our sources are suggesting the obvious, that a bankruptcy filing is in the works.

Is it that the firm can’t make payroll, or is that it won’t make payroll?

We know a number of former Morgan & Finnegan partners are getting ready for their new practice at Locke Lord, but it looks like those people might not be done with their old practice quite yet.

Earlier: Nationwide Dissolution Watch: Morgan & Finnegan?
Prior ATL coverage of law firm dissolutions

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