Famed Consulting Firm McKinsey Faces Lawsuit Alleging Concealment of Conflicts of Interest in Bankruptcy Cases
Portfolio Pulse from Vandana Singh
Global consulting firm McKinsey & Company is facing a lawsuit filed by Jay Alix, founder of rival firm AlixPartners. The lawsuit alleges that McKinsey concealed conflicts of interest in bankruptcy cases to gain an advantage in offering advisory services for corporate restructurings. The lawsuit also implicates U.S. Steel (NYSE:X), alleging that McKinsey failed to disclose its relationship with the company in the bankruptcy case of Alpha Natural Resources. The lawsuit is expected to proceed to the discovery stage.
August 22, 2023 | 7:32 pm
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U.S. Steel (NYSE:X) is implicated in a lawsuit against McKinsey & Company, alleging that McKinsey failed to disclose its relationship with U.S. Steel in a bankruptcy case.
The lawsuit alleges that McKinsey failed to disclose its relationship with U.S. Steel in the bankruptcy case of Alpha Natural Resources. If the allegations are proven true, it could potentially harm U.S. Steel's reputation and investor confidence, leading to a negative impact on its stock price in the short term.
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