McKinsey Seeks Rehearing of Decision Reviving Alix’s RICO Suit

McKinsey & Co. urged the Second Circuit to rehear an appeal over the standard to maintain a civil racketeering suit, saying the court’s three-judge panel erred in restoring claims that the consulting company concealed conflicts of interest.

The panel of the U.S. Court of Appeals for the Second Circuit revived in January restructuring guru Jay Alix’s lawsuit that accused McKinsey and its executives of violating the Racketeer Influenced and Corrupt Organizations Act and failing to adequately disclose potentially disqualifying conflicts of interest in large corporate clients’ bankruptcies. The suit also said McKinsey used a pay-to-play scheme to get hired for ...