Bottles of Purdue Pharma's OxyContin medication in Provo, Utah

McKinsey to Pay $650 Million to Settle U.S. Opioid Investigation

Global consulting firm McKinsey & Co has agreed to pay $650 million to resolve a U.S. Department of Justice (DOJ) investigation into its advisory role in promoting the sales of OxyContin, a powerful opioid produced by Purdue Pharma.

The settlement comes as part of a five-year deferred prosecution agreement filed in a federal court in Abingdon, Virginia, addressing criminal charges related to the opioid crisis. Prosecutors accused McKinsey of conspiring to misbrand OxyContin and obstructing justice by advising Purdue on strategies to “turbocharge” sales, despite the drug’s role in the devastating opioid epidemic.

As part of the agreement, McKinsey will enhance its compliance practices, undergo DOJ and Health and Human Services (HHS) oversight, and pay the $650 million penalty over five years. The company will also settle a related False Claims Act civil investigation and enter into a corporate integrity agreement with the HHS inspector general.

A former senior McKinsey partner, Martin Elling, has separately agreed to plead guilty to obstruction of justice. Prosecutors revealed that Elling deleted key documents related to McKinsey’s work for Purdue Pharma, even sending himself reminders to do so. He is expected to formally enter his plea on January 10.

In a statement, McKinsey expressed regret over its past actions:
“We are deeply sorry for our past client service to Purdue Pharma and the actions of a former partner who deleted documents. 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.”

The firm added that the opioid epidemic and its involvement with opioid manufacturers remain a “source of profound regret.”

Purdue Pharma, which pleaded guilty in 2020 to widespread misconduct surrounding OxyContin, continues to negotiate a multibillion-dollar settlement through court-ordered mediation after its previous bankruptcy plan was halted by the U.S. Supreme Court. In a statement, Purdue reiterated its commitment to delivering funds for “opioid abatement” and compensating victims.

This settlement marks another significant legal reckoning for McKinsey, which had previously paid nearly $1 billion in civil settlements to address claims that it contributed to the opioid crisis through its consulting services to Purdue and other pharmaceutical companies.

In 2019, McKinsey announced it would no longer engage with opioid-related businesses, though it has consistently denied any admission of wrongdoing in its settlements.

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