McKinsey Agrees to $650 Million Settlement Over Opioid Marketing #

Consulting Firm Resolves Criminal Charges Related to OxyContin Sales #

McKinsey & Co has agreed to pay $650 million to resolve a criminal investigation into its work advising OxyContin maker Purdue Pharma on boosting opioid sales. The consulting firm entered a five-year deferred prosecution agreement to resolve charges of conspiring to misbrand a drug and obstruction of justice.

Prosecutors alleged McKinsey provided advice to Purdue on measures to “turbocharge” OxyContin sales. The agreement is part of ongoing corporate prosecutions concerning the marketing of addictive painkillers that fueled the deadly U.S. opioid epidemic.

A former senior McKinsey partner has also agreed to plead guilty to obstruction of justice for destroying records related to the firm’s work for Purdue. He deleted documents from his company laptop and sent himself reminder emails to do so.

In a statement, McKinsey expressed deep regret for its past work with Purdue Pharma:

“We should have appreciated the harm opioids were causing in our society and we should not have undertaken sales and marketing work for Purdue Pharma. This terrible public health crisis and our past work for opioid manufacturers will always be a source of profound regret for our firm.”

As part of the agreement, McKinsey will pay $650 million over five years, improve compliance practices, and submit to oversight from the Department of Justice and Department of Health and Human Services. The firm also resolved a related civil probe regarding alleged False Claims Act violations.

This settlement follows Purdue’s 2020 guilty plea to criminal charges covering widespread misconduct in handling prescription painkillers. Purdue is currently involved in mediation over a multibillion-dollar bankruptcy settlement.

McKinsey had previously reached agreements totaling nearly $1 billion to settle lawsuits alleging it helped fuel the opioid epidemic through its work with Purdue and other drugmakers. In 2019, the company announced it would no longer advise clients on opioid-related businesses.