Arrest Spells the Death of the Dreier Model, Say Experts

, The American Lawyer

Marc Dreier wrote a story last year touting his model of a law firm in which only one person had an equity stake. But in the wake of his arrest for trying to swindle some $150 million from three investment groups, experts say the Dreier model is likely dead. The reason is simple: When one equity partner falls, the whole firm goes down with him. Dreier's sole ownership raises another question: Are the firm's other lawyers shielded from suits that angry clients are apt to bring if the firm owes them money?