Opioid crisis McKinsey to pay $650 million to defend opioid lawsuits
Due to its role in the devastating opioid crisis in the US, US consulting firm McKinsey & Company is paying an additional 650 million dollars to defend itself against lawsuits and legal action.
13.12.2024, 22:03
SDA
The consulting firm negotiated the final agreement with US government lawyers, it was announced on Friday. The opioid crisis, in which hundreds of thousands of people have died from the misuse of painkillers since 1999, is blamed primarily on Purdue Pharma, among others.
McKinsey admitted to working with Purdue Pharma and others and "knowingly and willfully" assisting in the "misbranding of prescription drugs," according to the agreement, which was filed in a Virginia state court.
The company also admitted that a senior McKinsey executive destroyed documents and hid archival materials to obstruct the investigation. The company fired two employees immediately after the scandal became public.
The agreement also mentions the fact that McKinsey has paid nearly one billion dollars since 2019 in various out-of-court settlements related to the opioid scandal.
McKinsey regrets
In a statement released on Friday, the consultancy said McKinsey deeply regrets having worked for Purdue Pharma and also "the actions of a former officer who destroyed documents".
The "terrible public health crisis" and "our past work for opioid manufacturers" would forever be a "source of deep regret" at the company. With the agreement now reached with the US government, McKinsey acknowledges its responsibility. At the same time, this "chapter in McKinsey's history" will be closed.
The Attorney General of Virginia, Chris Cavanaugh, said that McKinsey is now "the first consulting firm to be held criminally accountable for advice that led to the commission of a crime by its client".
