McKinsey to pay $650M in federal opioid probe
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Consulting giant McKinsey & Co. will pay $650 million in a deal with federal prosecutors over its work helping Purdue Pharma increase opioid sales.
Why it matters: It's the latest massive penalty to stem from the ongoing fallout to the opioid crisis, which has already cost the company more than $1 billion.
McKinsey will pay the new settlement as part of a deferred prosecution agreement. Reuters and CNBC reported a former top partner will also plead guilty to obstruction of justice.
- A criminal information filing submitted in a western Virginia federal court Friday alleges McKinsey "knowingly and intentionally conspired with Purdue Pharma L.P. and others to aid and abet the misbranding of prescription drugs, held for sale after shipment in interstate commerce, without valid prescriptions."
Catch up quick: Over a 20-year period ending in 2019, nearly half a million people died from opioid-related overdoses, the CDC has said.
- A 2022 review of hundreds of thousands of pages of documents — released as part of a previous settlement — showed McKinsey played a key role in consulting with drugmakers on increasing opioid sales during the worst of that crisis.
McKinsey apologized for its conduct in a statement Friday.
- "We are deeply sorry for our 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.
- "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."
