McKinsey Battles Rajaratnam Subpoena

Feb 1 2011 | 5:20am ET

Raj Rajaratnam wants McKinsey & Co. to hand over what it knows about alleged tipster Rajat Gupta. The consulting giant would rather not.

McKinsey last week moved to block a subpoena issued by the Galleon Group founder’s lawyers, seeking all “documents concerning any investigation conducted by McKinsey into the disclosure of non-public information by Anil Kumar and/or Rajat Gupta.” Kumar, a former senior director at McKinsey, is one of the more than one dozen people who have pleaded guilty in the Galleon insider-trading case; Gupta has not been accused of any criminal wrongdoing.

McKinsey’s response to Rajaratnam’s subpoena makes note of the fact that Gupta has not been charged in the case.

The most recent subpoena “is far broader than any subpoena the [Department of Justice] or [Securities and Exchange Commission] served on McKinsey in this matter and much broader than the three prior Rajaratnam subpoenas,” the motion to quash says. “This latest subpoena seeks troves of irrelevant, unspecific and inadmissible documents.”

McKinsey has already handed over some 16,000 pages of documents to Rajaratnam’s lawyers.

Gupta, a former head of McKinsey, allegedly passed confidential information about Berkshire Hathaway’s 2008 investment in Goldman Sachs. Gupta, a longtime friend and business associate of Rajaratnam’s, served on Goldman’s board of directors from 2006 until last year.

Rajaratnam, whose trial starts at the end of the month, may be seeking evidence to impeach Gupta in case he is called by prosecutors to testify.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note