Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

McKinsey & Co. to pay $15M to remedy inadequate disclosures in bankruptcy cases

Jaclyn Jaeger | February 20, 2019

Editor's Note: This post has been updated with a statement from McKinsey & Co.

Global consulting firm McKinsey & Co. entered into a $15 million multi-district settlement agreement with the Department of Justice’s U.S. Trustee Program to resolve disputes over the adequacy of McKinsey’s disclosures concerning a set of bankruptcy cases from 2001 to 2018.

According to the Department of Justice, “this is one of the highest repayments made by a bankruptcy professional for alleged non-compliance with disclosure rules.”

Under the Bankruptcy Code and Rules, the retention and payment of a professional firm by a debtor company in bankruptcy is contingent upon approval by the bankruptcy court after the firm discloses all its connections to the debtor, creditors, and other parties. These strict disclosure requirements allow the court, USTP, and parties involved in the case to identify any conflicts of interest that may taint the...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.