McKinsey & Company consulting firm has agreed to pay $650 million to settle a federal investigation into its work for opioids manufacturer Purdue Pharma. The settlement was disclosed in court papers filed in Virginia on Friday. As part of the agreement with the U.S. Justice Department, McKinsey will avoid prosecution on criminal charges by paying the sum and adhering to specific conditions for five years. These conditions include refraining from any involvement in the sale, marketing, or promotion of controlled substances.
A former McKinsey senior partner has also agreed to plead guilty to obstruction of justice for deleting documents from his laptop upon learning of investigations into Purdue Pharma. Court filings revealed that Purdue paid McKinsey over $93 million over 15 years for various services, including strategies to enhance revenue from OxyContin.
One of the tasks assigned to McKinsey was to identify prescribers who would generate additional prescriptions if Purdue salespeople targeted them. This led to prescriptions that were deemed unsafe, ineffective, medically unnecessary, and often diverted for illegitimate purposes. Additionally, McKinsey assisted Purdue in influencing federal regulations to minimize oversight on high-dose OxyContin and make prescriber training voluntary rather than mandatory.
Since 2021, McKinsey has settled with state and local governments for approximately $765 million for its role in advising businesses on increasing sales of potent prescription painkillers during the national opioid crisis. The consulting firm also reached a $78 million settlement with health care funds and insurance companies last year.
The U.S. has been grappling with an addiction and overdose crisis for years, resulting in over 80,000 deaths in recent times. The crisis, initially triggered by Purdue Pharma's OxyContin launch in 1996, has evolved over the years. Purdue executives previously pleaded guilty to misbranding charges in 2007, and the company agreed to pay fines. In 2020, Purdue Pharma pleaded guilty to criminal charges and accepted $8.3 billion in penalties and forfeitures, pending a bankruptcy court settlement.
McKinsey documents revealed Purdue's utilization of the consulting firm to boost opioid sales in 2013 amidst declining prescriptions due to the opioid crisis. The ongoing efforts to address the repercussions of the crisis continue as stakeholders navigate the complex landscape of addiction and overdose prevention.
