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McKinsey Agrees to Pay $15MM to End Bankruptcy Probe, Bloomberg

February 20, 2019, 09:06 AM
Filed Under: Bankruptcy
Related: Bankruptcy, McKinsey

Bloomberg reported McKinsey & Co. agreed to pay $15 million to end a probe by the U.S. Trustee into whether the global consulting firm violated disclosure rules designed to prevent conflicts of interest in corporate bankruptcies, a federal judge said in a court filing.

According to the Bloomberg report, under the terms, McKinsey did not 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. U.S. Bankruptcy Judge Marvin Isgur had been mediating a months-long dispute between McKinsey and the U.S. Trustee and Jay Alix, a retired bankruptcy adviser. The Trustee’s office and Alix accused McKinsey of hiding potential conflicts of interest that could have disqualified from the company from acting as a bankruptcy adviser in some cases.

Read the full Bloomberg report here.

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