Bankruptcy Law News

Bankrupt PG&E’s Economic Consultant Pick Has Conflict of Interest

May 7, 2019, 8:48 PM

Bankrupt utility giant PG&E Corp. shouldn’t be able to hire Compass Lexecon LLC to evaluate damages resulting from the California wildfires because of a potential conflict of interest with the consultant’s parent company, a federal government watchdog said.

Compass Lexecon would have a similar role reviewing and determining wildfire claims as its parent company, FTI consulting, the U.S. Trustee said in a May 6 filing in a California bankruptcy court. PG&E’s unsecured creditors committee asked for court approval to use FTI Consulting as its financial adviser April 3. The U.S. Trustee objected April 17 to FTI’s retention for the same...

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