McKinsey Settles for $650 Million Over Opioid Crisis Involvement

The firm admits to misbranding drugs and providing harmful sales tactics related to OxyContin alongside Purdue Pharma.

McKinsey & Company has agreed to pay $650 million to settle criminal charges stemming from its involvement in the U.S. opioid crisis. The consulting firm was accused of conspiring with pharmaceutical giant Purdue Pharma to misbrand prescription drugs, circumventing valid prescriptions, as stated by the U.S. Department of Justice (DOJ).

The DOJ noted that McKinsey had advised Purdue Pharma on strategies to "turbocharge" sales of OxyContin, a well-known painkiller based on oxycodone hydrochloride. In a recent statement, McKinsey expressed regret, acknowledging that it "should have appreciated the harm opioids were causing in our society."

Additionally, former McKinsey senior partner Martin Elling is expected to plead guilty to obstruction by unlawfully destroying records pertinent to the case. McKinsey entered into a deferred prosecution agreement, which allows for the dismissal of charges after five years if the company adheres to required reforms.

This settlement comes after McKinsey had already agreed to pay nearly $1 billion in lawsuits related to its previous collaboration with Purdue and other pharmaceutical companies. Purdue Pharma itself pleaded guilty in 2020, agreeing to an $8.3 billion settlement due to its role in the opioid crisis, admitting to facilitating drug supply without legitimate medical purpose.

Purdue Pharma, known for introducing OxyContin in the mid-1990s, significantly fueled the prescription opioid epidemic. Reports indicate that by 2002, OxyContin represented 68% of oxycodone sales, and it was one of the most abused substances by 2004.

The ongoing opioid epidemic has devastated communities, contributing to a staggering number of drug overdose deaths in the U.S., which reached nearly 100,000 fatalities annually. Nevertheless, recent data shows a slight decline in overdose deaths, with around 97,000 deaths reported in the year leading up to June 2024, marking a hopeful 14% decrease from the previous year.