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The end has come for Sedgwick, which announced in November its plans to dissolve at the end of 2017, but if all goes according to plan, the firm won’t head into bankruptcy court. Instead, the U.K.-based law firm Clyde & Co has agreed to hire a number of Sedgwick lawyers and staff members post-dissolution.

Plenty of former high-flying firms have collapsed into bankruptcy, from Thelen and Howrey to Heller Ehrman and Dewey & LeBoeuf. Yet in the half-decade since Dewey’s spectacular demise, other struggling firms, among them Bingham McCutchen, Dickstein Shapiro and WolfBlock, managed to avoid bankruptcy as they wound down, in part by striking deals, like Sedgwick’s, in which large groups of lawyers moved to a single new firm.

Part of the reason for law firms to choose a death of dissolution rather than insolvency stems from the experiences of firms that did go bankrupt, according to lawyers who have worked on law firm insolvencies.

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Scott Flaherty

Scott Flaherty, based in New York, covers the business of law with a focus on legal ethics, lawyer misconduct, conflicts-of-interest and litigation involving law firms. He can be reached at [email protected] On Twitter: @sflaherty18

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