McKinsey Pours Tens of Millions Into $8 Million Court Feud (1)

Global consulting giant McKinsey & Co. opened an unprecedented trial centered on whether it’s in violation of bankruptcy conflict-of-interest rules with a grim admission: even if it wins, the company will have burned through significantly more money than it can ever collect.

The advisory firm “has spent tens of millions of dollars” fighting allegations that it flouts court disclosure rules designed to expose potential conflicts of interest in corporate restructuring cases. The years-long feud between McKinsey and retired bankruptcy guru Jay Alix has become a reputational fight that U.S. Bankruptcy Judge David Jones has said could be “the ultimate career ...