Second Circuit Changes the Game in Alix v. McKinsey

Stephanie Wickouski and Chelsey List (both of New York) co-authored an article for the May edition of the American Bankruptcy Institute Journal examining the impact of the U.S. Court of Appeals for the Second Circuit’s recent decision in Jay Alix v. McKinsey & Co. Inc. — a case that examines whether a reciprocal referral arrangement — an alleged “pay-to-play” scheme — between a law firm and a restructuring advisory firm needed to be disclosed to the bankruptcy court in connection with the restructuring advisory firm’s retention. The authors consider the pre-Alix landscape of cases addressing the disclosure of reciprocal relationships and explains how the Alix v. McKinsey decision “presages a new playbook for reciprocity relationships in the restructuring world.”

To read the full article, click here.