Wednesday, 29 March 2017
Last updated 48 min ago
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.