McKinsey Agrees to Pay $15 Million to End Bankruptcy Probe
- Consulting firm had been accused of hiding potential conflicts
- Lawsuit by rival bankrutpcy adviser, Jay Alix, not resolved
Photographer: Kuzma/iStockphoto via Getty Images
This article is for subscribers only.
McKinsey & Co. agreed to pay $15 million to end a probe by the U.S. Trustee into whether the global consulting giant violated disclosure rules designed to prevent conflicts of interest in corporate bankruptcies, a federal judge said in a court filing.
Under the terms, McKinsey didn’t admit wrongdoing and the U.S. Trustee agreed to drop its objections to fees charged by the company’s bankruptcy unit in three Chapter 11 cases. The U.S. Trustee is an arm of the Department of Justice that monitor’s bankruptcies to ensure compliance with federal law.