McKinsey Ordered to Face Racketeering Lawsuit by Rival Jay Alix

McKinsey & Co. lost its bid to end racketeering litigation brought by AlixPartners LLP founder Jay Alix over its alleged scheme to win bankruptcy consulting work by lying in more than a dozen court cases.

Judge Jesse M. Furman let Alix’s lawsuit move forward, saying it’s plausible McKinsey’s top executives—including global managing partner Bob Sternfels and his predecessor, Dominic Barton—led a racketeering enterprise that relied on fraud and obstruction of justice to obtain bankruptcy assignments.

Furman rejected most of McKinsey’s arguments for throwing out the case, which was revived on appeal after he previously dismissed it. The allegations, if ...