The consulting firm McKinsey will pay $650 million to settle criminal charges linked to its collaboration with Purdue Pharma in misbranding opioid prescriptions, marking a notable step in addressing crises related to drug addiction and public health.
McKinsey Reaches $650 Million Settlement Over Opioid Misbranding Charges
McKinsey Reaches $650 Million Settlement Over Opioid Misbranding Charges
Consulting giant McKinsey & Company agrees to a substantial settlement stemming from its involvement in the U.S. opioid crisis, reflecting ongoing accountability measures for corporate malpractice.
McKinsey & Company has announced a $650 million settlement deal in response to criminal charges concerning its part in the U.S. opioid crisis. According to the U.S. Department of Justice, the consulting firm "knowingly and intentionally" conspired with Purdue Pharma to facilitate the misbranding of prescription drugs "without valid prescriptions." This significant settlement underscores the legal accountability firms may face in relation to public health issues.
Among the accusations, McKinsey is said to have provided Purdue Pharma with strategies to exponentially increase the sale of OxyContin, a widely prescribed opioid painkiller. In a statement, McKinsey admitted its shortcomings, acknowledging, "We should have appreciated the harm opioids were causing in our society." The company has also entered into a deferred prosecution agreement, which may lead to the dismissal of charges if it complies with reform requirements over the next five years.
Additionally, former senior partner Martin Elling is expected to plead guilty for obstructing justice by destroying pertinent records linked to the case. Previously, McKinsey settled close to $1 billion in lawsuits concerning its ties with Purdue and other pharmaceutical companies.
Purdue Pharma, at the center of the opioid crisis, entered a guilty plea in 2020, agreeing to an $8.3 billion settlement in connection with its role in the crisis, which has led to alarming rates of addiction and overdose deaths in the U.S. Since the mid-1990s, OxyContin has been a major contributor to the opioid epidemic, with staggering statistics highlighting its impact; nearly 100,000 drug overdose deaths occur annually in the United States. Although recent data indicates a 14% decline in overdose deaths, experts remain vigilant in tracking the crisis, driven by ongoing issues surrounding prescription opioids and synthetic drugs like fentanyl.
