Global consulting giant McKinsey & Company has agreed to pay $650 million to resolve criminal charges related to its involvement in America's devastating opioid epidemic. The settlement, reached through a deferred prosecution agreement with the U.S. government, allows the firm to avoid criminal prosecution while accepting responsibility for its actions.
Court documents filed in Virginia federal court reveal that McKinsey admitted to conspiring with pharmaceutical companies to boost sales of highly addictive painkillers. The firm provided strategic advice to opioid manufacturers, including Purdue Pharma, the maker of OxyContin, on marketing tactics that contributed to widespread addiction.
This latest penalty adds to McKinsey's mounting financial obligations stemming from the opioid crisis. Since 2019, the company has paid over $1.5 billion to settle various lawsuits and civil claims related to its consulting work with opioid manufacturers.
As part of the agreement, McKinsey will undergo five years of monitoring to verify compliance. The firm has committed to ending all advisory services related to opioid development, marketing, and sales. Federal authorities factored in McKinsey's delayed disclosure of misconduct during negotiations, though the firm's subsequent cooperation and internal reforms, including the dismissal of two employees who destroyed case-related documents, were considered.
The settlement emerges amid broader legal developments in the opioid crisis. Notably, the U.S. Supreme Court recently blocked Purdue Pharma's $5 billion bankruptcy settlement plan, which would have protected the Sackler family from future lawsuits.
The opioid epidemic has claimed more than 800,000 American lives since 1999. While McKinsey's settlement represents accountability for corporate involvement in the crisis, the human toll continues to impact communities across the nation.
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