Academic Study Explains Failure Pattern of Weil, Gotshal & Manges
What happened
Weil, Gotshal & Manges announced its dissolution after 95 years. This closure prompted renewed attention to a paper by Professor John Morley, which examines why seemingly healthy law firms can go bankrupt suddenly. Morley argues that the structure of law firms, which are owned by partners rather than investors, makes them susceptible to collapse.
From yale.edu
Why it matters
Morley’s research suggests that partner ownership creates conditions for a cycle of withdrawals, which he compares to a run on a bank. He observed that Weil, Gotshal & Manges followed this pattern, and he suggests the lessons apply beyond the legal industry.
From yale.edu
Who's involved
- John MorleyAcademic who studied the failure patterns of Weil, Gotshal & Manges.
- Yale Law SchoolInstitution where John Morley holds a professorship.
- Weil, Gotshal & MangesAmerican law firm that announced its dissolution after 95 years.
- ReutersInternational news agency that reported on the firm's closure.
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The entities involved
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John Morley
academic, born 1940
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Yale Law School
law school of Yale University
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Weil, Gotshal & Manges
American law firm
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