ModivCare Challenges AlixPartners’ $5 Million Bankruptcy Fees

Medical transportation company ModivCare accused AlixPartners LLP of committing “gang billing” by exaggerating billable hours and overstaffing while advising a committee of unsecured creditors during the company’s bankruptcy proceedings.

AlixPartners’ $5 million application for compensation and expense reimbursements as financial adviser to the committee for about 111 days should be scrutinized, the transportation company said in a March 4 filing in the US Bankruptcy Court for the Southern District of Texas.

“The time records reveal a pervasive, recurring pattern of billing large numbers of AlixPartners professionals for the same internal coordination calls,” the company said.

ModivCare won court approval of ...