Tracy Hope Davis, who represents the U.S. Justice Department in the high-profile bankruptcy case, said the proposed plan did not provide enough information to determine if the cost of retaining employees was economically feasible.
The law firm is seeking to pay $450,000 to its 52 remaining employees who collect money and bill former clients.
The trustee also said the plan could not be justified, as claimed by the law firm, because it is no longer operating as a normal business.
Last month, the trustee objected to the retention of law firms and public relations advisers that had filed applications to advise Dewey in its bankruptcy proceedings.
Once one of the largest law firms in the United States, Dewey was hit by the loss of the vast majority of its roughly 300 partners to other firms amid concerns about compensation and a heavy debt load.
The firm filed for Chapter 11 bankruptcy protection in May, listing $193.2 million in assets and $245.4 million in liabilities.
A call to Togut, Segal & Segal LLP, the law firm representing Dewey, went unanswered.
The case is In re: Dewey & LeBoeuf LLP, U.S. Bankruptcy Court, Southern District of New York, No. 12-12321.
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