(DCNF)—A consulting giant that helped fuel the United States’ deadly opioid epidemic agreed to pay a massive settlement to avoid criminal prosecution, according to court papers filed Friday.
McKinsey & Company, an international management consulting firm that advised Purdue Pharma to “turbocharge” sales of Oxycontin during the height of the opioid crisis, entered into a deferred prosecution agreement with the Department of Justice (DOJ) that will require the firm to pay a $650 million settlement over five years.
A former senior McKinsey employee also pleaded guilty to an obstruction of justice charge for destroying records detailing the consulting giant’s work for Purdue.
The McKinsey settlement is the latest in a string of lawsuits seeking accountability from corporations and consulting firms for contributing to the opioid crisis.
The epidemic, created in part from the work of Purdue and McKinsey to market OxyContin to millions of Americans, has taken more than 500,000 lives and left a trail of devastation in its wake, particularly in parts of rural America.
“McKinsey schemed with Purdue Pharma to ‘turbocharge’ OxyContin sales during a raging opioid epidemic — an epidemic that continues to decimate families and communities across the nation,” U.S. Attorney Joshua Levy for the District of Massachusetts, who sued McKinsey alongside an attorney for the Western District of Virginia over the firm’s consulting work for Purdue, wrote following the settlement. “Consulting firms like McKinsey should get the message: if the advice you give to companies in boardrooms and PowerPoint presentations aids and abets criminal activity, we will come after you and we will expose the truth.”
“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 consulting firm wrote in a statement following the settlement. “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.”
McKinsey has previously agreed to pay nearly $1 billion to other plaintiffs to end lawsuits tied to the firm’s work with Purdue.
Purdue Pharma filed for bankruptcy in 2019 in response to thousands of lawsuits over its deceptive marketing that downplayed the addictiveness of OxyContin. The company also plead guilty to criminal charges in 2007 and 2020 stemming from its marketing of OxyContin.
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