Fri Dec 13 17:43:24 UTC 2024: **McKinsey to Pay $650 Million to Settle Opioid-Related Charges**
**Abingdon, Virginia –** Consulting giant McKinsey & Company will pay $650 million to resolve criminal charges stemming from its work advising Purdue Pharma on boosting OxyContin sales, the Department of Justice announced Friday. The settlement, part of a five-year deferred prosecution agreement, concludes a rare corporate prosecution linked to the opioid crisis.
Prosecutors alleged McKinsey provided Purdue with strategies to “turbocharge” OxyContin sales, charging the firm with conspiring to misbrand the drug and obstructing justice. A former McKinsey senior partner, Martin Elling, has also agreed to plead guilty to obstruction of justice for destroying related documents. He is scheduled to enter his plea on January 10th.
In a statement, McKinsey expressed deep regret for its past work with Purdue and the actions of Mr. Elling. The firm acknowledged it should have recognized the harm caused by opioids and refrained from assisting Purdue with sales and marketing.
Beyond the financial penalty, the agreement requires McKinsey to enhance compliance practices and undergo oversight from the Justice Department and the HHS inspector general’s office. The firm will also resolve a related civil probe and enter into a corporate integrity agreement with the HHS.
This settlement follows Purdue Pharma’s own 2020 guilty plea on charges related to the opioid crisis and its ongoing bankruptcy proceedings, which aim to deliver billions of dollars for opioid abatement and victim compensation. McKinsey previously reached nearly $1 billion in settlements regarding its role in the crisis, encompassing lawsuits from various entities including states, local governments, and tribes. In 2019, McKinsey ceased advising clients on opioid-related businesses. The firm maintains that its settlements do not constitute admissions of liability or wrongdoing.
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