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McKinsey Faces Discovery as Jay Alix Suit Is Ordered to Resume (1)

April 28, 2022, 7:46 PMUpdated: April 28, 2022, 8:03 PM

McKinsey & Co. must face Jay Alix’s sprawling civil racketeering suit for allegedly concealing conflicts of interest, after a Second Circuit order lifted a pause on the case.

The U.S. Court of Appeals for the Second Circuit’s Wednesday order allows the court to follow through on its January decision to revive Alix’s federal claims that McKinsey failed to reveal conflicts of interest while advising large corporate debtors in bankruptcy.

Last week, the Second Circuit gave McKinsey a seven-day reprieve to seek relief from the Supreme Court, but Justice Sonia Sotomayor denied the consulting giant’s request to halt the case.

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