McKinsey nears $600 million settlement over role in opioid crisis
Global consulting giant McKinsey & Company is close to finalizing a $600 million settlement with the United States government, The Guardian reported. The deal would settle a criminal investigation into the company's alleged role in ramping up opioid sales, fueling an addiction epidemic. The settlement, scheduled to be announced this year, would result in prosecutors attempting to dismiss criminal charges against McKinsey after a certain period of time as long as the corporation followed the terms of the deal.
Settlement includes civil violations, possible charge dismissal
As part of their investigation, prosecutors are also looking into whether McKinsey obstructed justice in connection with its work advising opioid producers, according to people familiar with the case. The firm had previously settled lawsuits worth nearly $1 billion for its advisory work for Purdue Pharma and other drugmakers. The settlements included all 50 US states, Washington DC, US territories, local governments, school districts, Native American tribes, and health insurers.
McKinsey's past settlements and cessation of opioid-related advisories
In 2019, McKinsey had said it would no longer advise clients on opioid-related businesses. Despite the settlements, McKinsey has always maintained that they don't amount to admissions of liability or wrongdoing. Purdue Pharma had pleaded guilty in 2020 to criminal charges over its handling of prescription painkillers. The pharmaceutical company is currently undergoing court-ordered mediation over a multibillion-dollar settlement from bankruptcy proceedings.
