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Home›Music Industry›2nd Circle Reignites bankruptcy fraud claims against McKinsey

2nd Circle Reignites bankruptcy fraud claims against McKinsey

By Kimberly L. Ferguson
March 11, 2023
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By Dorothy Atkins (January 19, 2022, 8:12 p.m. EST) — The Second Circuit on Wednesday relaunched a racketeering lawsuit accusing McKinsey & Co. of intentionally failing to disclose disqualifying conflicts of interest in major bankruptcy cases, finding that the trial court erred in finding that the alleged harm to a rival bankruptcy counsel was too attenuated.

In a 31-page opinion written by U.S. Circuit Court Judge Barrington D. Parker, a unanimous three-judge panel overturned a lower court order dismissing Jay Alix’s racketeering allegations, finding that Alix had plausibly alleged that his company lost business to McKinsey and was harmed by McKinsey’s allegedly inadequate conflict of interest disclosures provided to bankruptcy courts.

“Usually we…

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