Weil, Gotshal & Manges, a roughly 1,200-lawyer firm with more than $2 billion in revenue last year, told partners on October 28, 2026 that its management recommended winding the firm down, Reuters reported. Days later, AI-native law firm Crosby confirmed it had bid to buy pieces of the collapsing firm, including its trademark and brand.
Weil’s management committee recommended an “orderly wind-down” after reviewing strategic alternatives, the firm said in a statement. It hired AlixPartners to advise and intends to wind down outside bankruptcy, with associates and staff paid for 90 days plus year-end bonuses, according to a person with knowledge of the plan cited by Reuters.
Weil said it would keep serving clients during the process “with the dedication and excellence” that have defined the firm. Partners are expected to vote on the wind-down plan in the coming days.
What led to the wind-down
The decision followed a string of senior partner departures. Corporate department chair Michael Aiello, a leading M&A lawyer, left for Cravath, Swaine & Moore and took five partners with him. A private equity partner joined Paul, Weiss, Rifkind, Wharton & Garrison, two London-based mergers partners moved to Sullivan & Cromwell, and more lawyers went to Simpson Thacher & Bartlett and other firms, per Reuters.
Merger talks with Willkie Farr & Gallagher also collapsed, and the executive partner succession plan fell through when the announced successor reportedly decided not to take the role, per a person familiar with the matter cited by Reuters. Davis Polk & Wardwell was hired for restructuring help as departures continued, Reuters reported.
How Weil compares to its peers
Weil’s average profit per equity partner was about $5.4 million last year, roughly half the more than $10 million average at Kirkland & Ellis and Wachtell, Lipton, Rosen & Katz, according to American Lawyer data cited by Reuters. Weil was founded in 1931.
| Firm | Approx. lawyers | Status |
|---|---|---|
| Weil, Gotshal & Manges | ~1,200 | Winding down, outside bankruptcy (announced Oct 28, 2026) |
| Dewey & LeBoeuf (2012 collapse) | ~1,300 | Collapsed after partner defections and heavy debt |
Reuters noted Weil is close in size to the former Dewey & LeBoeuf, which collapsed in 2012 after a wave of partner departures and heavy debt. Reuters did not say Weil’s situation would follow the same path, noting the wind-down is planned outside bankruptcy.
Weil’s planned exit comes amid a broader wave of consolidation among large law firms. Reuters’ reporting pointed to Cadwalader, Wickersham & Taft’s merger with Hogan Lovells earlier this year, and Shearman & Sterling’s 2024 merger with Allen & Overy, as recent examples of large firms choosing to combine rather than compete independently.
Why an AI-native law firm is bidding on the remains
Crosby, a two-year-old AI-native law firm, has bid to buy some of Weil’s assets, including its trademark, brand and some unspecified internal data, TechCrunch confirmed. Terms were not disclosed, and there is no guarantee Crosby will win the assets.
Crosby has raised about $85 million total, including a $60 million Series B round led by Lux Capital and Index Ventures, TechCrunch reported. Unlike AI legal-tools vendors, Crosby operates as an actual law firm that uses its own AI to deliver legal services directly to clients, a structural distinction TechCrunch’s reporting draws out specifically against vendors such as Harvey and Legora.
TechCrunch reported that Crosby is separately working to hire some of Weil’s roughly 1,200 lawyers, though this detail was not independently confirmed in its reporting. TechCrunch’s own coverage also notes that no one has established a direct link between the rise of AI legal tools and Weil’s collapse, even as an AI-native firm now bids on the decades-old institution’s name and brand.
Frequently asked questions
Is Weil Gotshal filing for bankruptcy?
No. The firm intends to wind down outside bankruptcy, according to a person with knowledge of the plan cited by Reuters, rather than through a formal bankruptcy filing.
What happens to Weil’s roughly 1,200 lawyers?
Reuters’ reporting does not specify final outcomes for staff. Associates and staff are set to be paid for 90 days and receive year-end bonuses, per a person with knowledge of the plan. Crosby is separately reported to be working to hire some Weil lawyers, though TechCrunch did not independently confirm that detail.
What is Crosby bidding for exactly?
Weil’s trademark, brand and some unspecified internal data, per TechCrunch’s reporting. Bid terms have not been disclosed, and there is no guarantee Crosby will be the winning bidder.
What to watch next
Watch for the outcome of Weil’s partner vote on the wind-down plan, whether Crosby’s bid for the firm’s trademark and data is accepted, and whether other bidders emerge for Weil’s remaining assets and lawyers.
Leave a Reply