Please ensure Javascript is enabled for purposes of website accessibility
McKinsey & Company Agrees to Pay $650 Million to Settle Federal Probe Over Opioids Work
gvw_ap_news
By Associated Press
Published 4 months ago on
December 13, 2024

Protesters gather outside a courthouse on Friday, Aug. 2, 2019, in Boston, where a judge was to hear arguments in Massachusetts' lawsuit against Purdue Pharma over its role in the national drug epidemic. (AP File)

Share

Getting your Trinity Audio player ready...

WASHINGTON — McKinsey & Company consulting firm has agreed to pay $650 million to settle a federal investigation into its work for opioids manufacturer Purdue Pharma, according to court papers filed in Virginia on Friday.

As part of the deal with the U.S. Justice Department, McKinsey will avoid prosecution on criminal charges if it pays the sum and follows certain conditions for five years, including ceasing any work on the sale, marketing or promoting of controlled substances, according to the court papers.

A former McKinsey senior partner has also agreed to plead guilty to obstruction of justice for deleting documents from his laptop after he became aware of investigations into Purdue Pharma, according to the filings.

McKinsey representatives didn’t immediately respond to phone and email messages on Friday.

McKinsey Paid Over $93 Million on Products, OxyContin

Court filings say Purdue paid McKinsey more than $93 million over 15 years for a number of products, including how to improve revenue from OxyContin.

One of the jobs, the papers said, was to identify which prescribers would generate the most additional prescriptions if Purdue salespeople focused on that. That resulted in prescriptions that “were not for a medically accepted indication, were unsafe, ineffective, and medically unnecessary, and that were often diverted for uses that lacked a legitimate medical purpose,” the filing said.

The company also tried to help Purdue get a say in shaping federal rules intended to ensure the benefits of addictive prescription drugs outweighed the risks. The government said in its new filings that that resulted in making high-dose OxyContin subject to the same oversight as lower-dose opioids and made training for prescribers voluntary rather than mandatory.

Since 2021, McKinsey has agreed to pay state and local governments about $765 million in settlements for its role in advising businesses on how to sell more of the powerful prescription painkillers amid a national opioid crisis.

The consulting firm also agreed last year to pay health care funds and insurance companies $78 million.

The U.S. has been in an addiction and overdose crisis for decades, linked to more than 80,000 deaths in recent years. For the past decade, most of the deaths have been attributed to illicit fentanyl, which is laced into many illegal drugs. Earlier in the epidemic, prescription pills were the primary cause of death.

Some advocates say the crisis was touched off when Purdue Pharma’s OxyContin hit the market in 1996.

Three Purdue executives pleaded guilty to misbranding charges in 2007 and the company agreed to pay a fine. The company pleaded guilty to criminal charges in 2020 and agreed to $8.3 billion in penalties and forfeitures — most of which will be waived as long as it executes a settlement through bankruptcy court that is still in the works.

McKinsey documents made public over the years describe Purdue using the consulting firm to help “turbocharge” opioid sales in 2013, as blowback against the opioid crisis meant that the company’s drugs were being prescribed less.

RELATED TOPICS:

DON'T MISS

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

DON'T MISS

California Just Blew Its First Deadline for Voter-Approved Healthcare Measure

DON'T MISS

Trump Administration Halts Dozens of Research Grants at Princeton University

DON'T MISS

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

DON'T MISS

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

DON'T MISS

How Safe Is It to Walk to School? Fresno County Wants to Find Out

DON'T MISS

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

DON'T MISS

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

DON'T MISS

Auto Sales Surged in Anticipation of Trump’s Tariffs

DON'T MISS

Raid Or Rumor? Reports Of Immigrations Sweeps Are Warping Life In CA’s Central Valley

UP NEXT

Trump Administration Halts Dozens of Research Grants at Princeton University

UP NEXT

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

UP NEXT

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

UP NEXT

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

UP NEXT

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

UP NEXT

Auto Sales Surged in Anticipation of Trump’s Tariffs

UP NEXT

Raid Or Rumor? Reports Of Immigrations Sweeps Are Warping Life In CA’s Central Valley

UP NEXT

House Speaker Johnson Fails to Squash a Proxy Voting Effort From New Moms in Congress

UP NEXT

UN Agency Closes Its Remaining Gaza Bakeries as Food Supplies Dwindle Under Israeli Blockade

UP NEXT

Hooters Goes Bust and Files for Bankruptcy Protection

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

4 hours ago

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

4 hours ago

How Safe Is It to Walk to School? Fresno County Wants to Find Out

4 hours ago

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

5 hours ago

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

5 hours ago

Auto Sales Surged in Anticipation of Trump’s Tariffs

6 hours ago

Raid Or Rumor? Reports Of Immigrations Sweeps Are Warping Life In CA’s Central Valley

6 hours ago

House Speaker Johnson Fails to Squash a Proxy Voting Effort From New Moms in Congress

6 hours ago

UN Agency Closes Its Remaining Gaza Bakeries as Food Supplies Dwindle Under Israeli Blockade

7 hours ago

Hooters Goes Bust and Files for Bankruptcy Protection

7 hours ago

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

Elon Musk has reclaimed his position as the world’s wealthiest individual, according to Forbes’ 39th annual World’s Billio...

1 hour ago

1 hour ago

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

3 hours ago

California Just Blew Its First Deadline for Voter-Approved Healthcare Measure

Nassau Hall at Princeton University is in Princeton, N.J., Oct. 8, 2024. (AP File)
3 hours ago

Trump Administration Halts Dozens of Research Grants at Princeton University

After 31 years of service, Fresno County Sheriff’s Deputy IV and Pilot Michael Sill is retiring, having logged over 10,000 flight hours.
4 hours ago

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

Khalid Ahmad holds a poster of his 17-year-old son, Waleed, who died in an Israeli prison, that reads in Arabic, "The hero prisoner Martyr, mercy and eternity for our righteous Martyrs," in the West Bank town of Silwad, northeast of Ramallah Wednesday, March 26, 2025. (AP/Nasser Nasser)
4 hours ago

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

4 hours ago

How Safe Is It to Walk to School? Fresno County Wants to Find Out

5 hours ago

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

Vehicles at an Audi showroom in Miami, March 29, 2025. President Donald Trump has said that tariffs would encourage auto companies and their suppliers to move to the U.S. (Saul Martinez/The New York Times)
5 hours ago

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

Help continue the work that gets you the news that matters most.

Search

Send this to a friend