McKinsey & Company, a global consulting firm that played a key role in promoting OxyContin sales during the opioid epidemic, has agreed to pay a $650 million settlement as part of a deferred prosecution agreement with the Department of Justice (DOJ), court documents revealed Friday.
The settlement will be paid over five years and is part of a broader effort to hold corporations and consulting firms accountable for their contributions to the opioid crisis, which has claimed more than 500,000 American lives and devastated countless communities.
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Under the agreement, McKinsey avoids criminal prosecution for its consulting work with Purdue Pharma, the manufacturer of OxyContin. However, a former senior McKinsey employee pleaded guilty to obstruction of justice for destroying records related to the firm’s work with Purdue, further highlighting the extent of McKinsey’s involvement.
The DOJ alleged that McKinsey actively collaborated with Purdue to “turbocharge” OxyContin sales even as the opioid epidemic ravaged the nation.
The opioid epidemic, fueled in part by aggressive marketing strategies developed by Purdue and supported by McKinsey, has disproportionately affected rural communities and low-income Americans. Millions of prescriptions for OxyContin were written as a result of these marketing campaigns, contributing to widespread addiction, overdoses, and deaths.
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“This epidemic continues to decimate families and communities across the nation,” said U.S. Attorney Joshua Levy for the District of Massachusetts, who led the lawsuit alongside the Western District of Virginia. “Consulting firms like McKinsey should get the message: if the advice you give to companies aids and abets criminal activity, we will come after you and expose the truth.”
McKinsey issued a public apology after the settlement was announced.
“We are deeply sorry for our past client service to Purdue Pharma and the actions of a former partner who deleted documents related to his work for that client,” the firm said in a statement. “We should have appreciated the harm opioids were causing in our society and we should not have undertaken sales and marketing work for Purdue Pharma. This terrible public health crisis and our past work for opioid manufacturers will always be a source of profound regret for our firm.”
The McKinsey settlement follows a series of lawsuits targeting pharmaceutical companies, consulting firms, and distributors for their roles in the opioid crisis. Purdue Pharma has already filed for bankruptcy and faced massive civil penalties, while its owners, the Sackler family, reached a $6 billion settlement earlier this year.
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The DOJ’s action against McKinsey marks one of the most significant moves to hold consulting firms accountable for their behind-the-scenes role in exacerbating the crisis.
The $650 million settlement will be used to support opioid recovery programs and public health initiatives aimed at addressing the ongoing crisis. The DOJ has vowed to continue pursuing accountability from corporations and individuals whose actions contributed to the epidemic.
“This settlement sends a strong message: no one is above the law,” Levy stated. “We will continue to seek justice for the countless families and communities devastated by the opioid epidemic.”
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