McKinsey & Company Agrees to Pay $650 Million to Settle Opioid Probe
McKinsey & Company, a leading global consulting firm, has agreed to pay $650 million to resolve a federal criminal probe into its consulting work advising Purdue Pharma on how to increase sales of its opioid painkiller OxyContin. The company has also agreed to pay $1 billion to settle lawsuits by states, local governments, and others related to its opioid consulting.
Under the deferred prosecution agreement, McKinsey will not work on any marketing, sale, promotion, or distribution of controlled substances. The company has also agreed to settle a related civil False Claims Act investigation and enter into a Corporate Integrity Agreement with the Office of Inspector General at the Department of Health and Human Services.
According to the criminal charging document, McKinsey is accused of knowingly and intentionally conspiring with Purdue Pharma and others to aid and abet the misbranding of prescription drugs. The company is also accused of destroying and concealing records and documents to impede the investigation by the Department of Justice.
A former top partner at McKinsey, Martin Elling, has agreed to plead guilty to obstruction of justice next month in the probe. The company has accepted responsibility for the conduct alleged by federal prosecutors and expressed regret for its past work on opioid marketing.
In a statement, McKinsey said it is “deeply sorry” for its past client service to Purdue Pharma and the actions of a former partner who deleted documents related to his work for that client. The company said it should have appreciated the harm opioids were causing in society and should not have undertaken sales and marketing work for Purdue Pharma.