UPDATE 1-Restructuring pioneer Jay Alix sues McKinsey for racketeering [Reuters]
FTI Consulting, Inc. (FCN)
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Source: Reuters
UPDATE 1-Restructuring pioneer Jay Alix sues McKinsey for racketeering | Reuters Reuters Staff 3 Min Read (Adds McKinsey statement in paragraph five) By Tom Hals WILMINGTON, Del., May 9 (Reuters) - The founder of corporate restructuring firm AlixPartners sued competitor McKinsey & Co on Wednesday, claiming the strategic consulting giant ran a “criminal enterprise” that concealed potential conflicts of interest from U.S. bankruptcy judges in order to land valuable advisory assignments. McKinsey and its affiliates committed bankruptcy fraud, mail fraud, wire fraud and engaged in a pattern of racketeering, according to Jay Alix, who filed his lawsuit in federal court in Manhattan. Lawyers and financial advisers who seek a judge’s approval to work for a bankrupt company must disclose their links to other parties in the case, such as investors, professionals and creditors, that could present conflicts of interest. The process is meant to ensure transparency and fairness and violations can
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