Consulting giant McKinsey settles opioid lawsuits for $230 million
Consulting giant McKinsey & Co has decided to pay $230 million to settle lawsuits. They accuse the company of fueling an opioid epidemic in the US, through its role in advising drug manufacturers. The lawsuits were filed by schools, local governments, Native American communities, and parents on behalf of children, who were born with withdrawal symptoms. To note, the company maintains that it ceased to advise clients on opioid-related business back in 2019.
Opioids: America's leading cause of overdose deaths
Opioids are the leading cause of death due to drug overdose in the US, with over 75% of all such deaths in 2021 linked to them. McKinsey had previously paid more than $640 million in 2021 to end lawsuits raised by 50 state attorney generals over its work for bankrupt OxyContin manufacturer Purdue Pharma and others. The court documents allege that McKinsey strategized with drug makers to aggressively market prescription opioids "to maximize opioid revenues."
McKinsey's controversial role in Purdue Pharma's marketing
According to Tuesday's court filing, McKinsey made marketing strategies for Purdue "before and after" the latter's first guilty plea in 2007, related to misbranding of OxyContin. Although McKinsey has consistently maintained that its previous work was lawful, the firm stopped advising clients on opioid-related business four years ago. In a 2020 statement, McKinsey said, "We did not adequately acknowledge the epidemic unfolding in our communities or terrible impact of opioid misuse and addiction on millions of families across the country."
Judge's approval pending, Purdue bankruptcy challenged
The $230 million settlement still requires a judge's approval. Out of the sum, $207 million will go to counties and municipalities, while the rest to public school districts. On a related note, the US Supreme Court last month, agreed to hear a challenge by the Justice Department to Purdue Pharma's $6 billion bankruptcy settlement. This affected the agreement that protected the company's owners, the Sackler family, from future lawsuits over their role in the opioid epidemic.
