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McKinsey Said to Pay $17.5 Million to Try to End Fraud Probe

April 2, 2019, 10:07 PM

McKinsey & Co. agreed to pay $17.5 million to a creditors’ trust in an effort to block a potential fraud probe related to its actions in the SunEdison Inc. bankruptcy, a person familiar with the payment said.

The settlement with a so-called litigation trust controlled by SunEdison creditors should put an end to a demand by retired adviser Jay Alix to investigate McKinsey’s actions in the bankruptcy, the global consulting giant said in court April 2.

For several years, Alix and McKinsey have been locked in a scorched-earth legal fight over whether McKinsey complies with intricate conflict-of-interest rules imposed on ...