Veteran turnaround executive Jay Alix is suing consulting giant McKinsey & Co. over claims the company has failed to adequately disclose conflicts of interests in its bankruptcy and restructuring business, WSJ Pro Bankruptcy reported. AlixPartners founder Jay Alix claims McKinsey’s restructuring unit, RTS, has received tens of millions of dollars in bankruptcy fees “that it would not have otherwise earned had it disclosed its numerous connections to interested parties and conflicts of interests as required by law,” according to a lawsuit filed Wednesday in U.S. District Court in New York. The restructuring pioneer claims McKinsey “conducted a criminal enterprise” by failing to comply with conflict of interest disclosure rules in its bankruptcy advisory business. By failing to disclose the alleged conflicts, the consulting firm and its top executives have harmed AlixPartners, the turnaround firm Mr. Alix founded, for the past 17 years, the lawsuit claims.
