The settlement highlights the firm’s role in aiding Purdue Pharma's marketing strategies for OxyContin while obstructing justice in the process.
McKinsey Agrees to $650 Million Settlement Over Opioid Crisis Involvement
McKinsey Agrees to $650 Million Settlement Over Opioid Crisis Involvement
Consulting giant McKinsey & Company will pay $650 million to resolve criminal charges linked to the opioid epidemic in the United States.
In a significant move, McKinsey & Company announced its agreement to pay $650 million in settlement of criminal charges tied to its involvement in the ongoing opioid crisis in the United States. The payment comes amidst allegations that the consulting firm "knowingly and intentionally" conspired with Purdue Pharma to misbrand prescription drugs, effectively promoting their use without valid prescriptions.
The U.S. Department of Justice detailed that McKinsey provided Purdue Pharma with strategies aimed at increasing the sales of OxyContin, a medication containing oxycodone hydrochloride. Among the charges it faced were conspiring to misbrand the drug and obstruction of justice. Following these revelations, McKinsey issued an apology, expressing regret for failing to recognize the societal harm caused by opioids.
Additionally, former McKinsey senior partner Martin Elling is preparing to plead guilty to obstruction, associated with the destruction of records pertinent to the case. McKinsey has entered into a deferred prosecution agreement that may lead to the dismissal of charges if the company fulfills certain conditions over the next five years.
This settlement follows previous agreements whereby McKinsey compensated nearly $1 billion concerning its relationships with Purdue and other pharmaceutical companies. Purdue Pharma, known for introducing OxyContin in the mid-1990s, pleaded guilty to related charges in 2020, resulting in an $8.3 billion settlement.
The repercussions of the opioid crisis have been profound, with drug addiction and overdose deaths dramatically rising over the past three decades. Nearly 100,000 individuals succumb to drug overdoses annually in the United States; however, recent statistics show a 14% decrease in overdose deaths within the past year, providing a glimmer of hope amidst a prolonged crisis.
