McKinsey Hit With RICO Suit Alleging It Hid Conflicts in Bankruptcy Proceedings
Jay Alix, founder of McKinsey rival AlixPartners, claims McKinsey has unfairly profited by keeping secret its conflicted client relationships while handling bankruptcy cases, despite federal bankruptcy rules that require disclosure.
May 09, 2018 at 04:47 PM
3 minute read
The founder of consulting firm AlixPartners, Jay Alix, filed a complaint against rival McKinsey & Co. in Manhattan federal court Wednesday, charging the international consulting behemoth with racketeering conspiracies to conceal conflicts of interest in corporate bankruptcy cases.
The 150-page complaint filed in the U.S. District Court for the Southern District of New York alleged that McKinsey, its affiliates, and top officials operated a criminal enterprise, engaged in bankruptcy fraud, as well as mail and wire fraud, to keep tens of millions in bankruptcy fees flowing.
To keep the fraud covered up, Alix alleged, the company had to conceal the interested parties it had connections with in the bankruptcy restructuring market, costing AlixPartners the competitive opportunity at these business opportunities, according to the complaint.
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