McKinsey urges end to turnaround pioneer’s US racketeering lawsuit
New York — McKinsey & Co urged a Manhattan federal judge to dismiss turnaround veteran Jay Alix’s lawsuit claiming the consulting firm operates as a "criminal enterprise" by hiding conflicts of interest in its bankruptcy and restructuring operations. In a Monday night court filing, McKinsey labeled Alix’s May 9 lawsuit as "the litigation equivalent of a thermonuclear device", bereft of support for its "stark allegations of fraud" or to show any scheme to harm Alix’s rival firm, AlixPartners. Alix’s lawyer Sean O’Shea rejected McKinsey’s defences. "The arguments in McKinsey’s motion are borderline delusional," O’Shea, a partner at Boies Schiller & Flexner, said in a statement. McKinsey’s filing and Alix’s response escalate the battle for market share from lucrative bankruptcy restructuring. Lawyers and advisers hoping to work for bankrupt companies must disclose potentially conflicting ties to investors, creditors and other parties. Alix’s 150-page complaint said McKinsey and six exe...
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