Report: Heller Ehrman Dissolution Now “Likely”

Law firm Heller Ehrman is headed toward dissolution according to The Recorder, which reports that Heller management held a firm-wide videoconference at 4:30pm yesterday to update the partnership on the status of the firm’s line of credit, opportunities for groups and offices, and “plans for an orderly transition (or wind-down).” The firm’s line of credit reportedly became an issue earlier this month when 14 intellectual property litigators announced that they intended to join Covington & Burling.

The Recorder reports that firm management has been talking to other law firms, including three former merger partners, to pick up large chunks of Heller:

Law firms continue to aggressively pursue big chunks of Heller. Some leaders from out-of-town firms are now camped out in San Francisco hotels, arranging meetings with Heller partners, according to people familiar with the situation. In some cases, representatives from other firms were even negotiating with groups of Heller lawyers in Heller’s own office buildings, others said.

Heller’s securities litigation group is among the practice groups drawing a lot of interest.  Law firms Ropes & Gray and King & Spalding are reportedly interested in the taking on the group.