McKinsey & Company has agreed to pay $650 million to settle a Justice Department investigation of its work with the opioid maker Purdue Pharma. A former senior associate has additionally agreed to plead responsible to obstruction of justice for destroying inside firm data in reference to that work.
At the middle of the federal government’s case was the worldwide consulting large’s suggestion that Purdue Pharma “turbocharge” gross sales of Purdue’s flagship OxyContin painkiller within the midst of an opioid dependancy epidemic that was killing lots of of hundreds of Americans.
The settlement and the federal government’s findings had been offered at a information convention in Boston on Friday. According to prosecutors, McKinsey “knew the dangers and risks related to OxyContin,” in addition to the truth that prime Purdue Pharma executives had pleaded responsible to federal crimes referring to gross sales of the drug. Yet the consulting firm selected to proceed working with the drugmaker to spice up gross sales of the opioid.
More than two dozen McKinsey companions consulted for Purdue over roughly 15 years, incomes the agency $93 million.
The settlement, which the federal government mentioned ended its investigation of McKinsey, stemmed from expenses introduced by the U.S. legal professional’s workplaces in Massachusetts and the Western District of Virginia. The case is unrelated to Purdue Pharma’s multibillion-dollar chapter plan, now in authorized limbo, that will have provided compensation to tens of hundreds of households. Still, the McKinsey settlement brings closure to at least one strand of a broad authorized effort to grapple with the business behind the opioid epidemic.
McKinsey is extensively considered the world’s most prestigious administration consulting agency, with workplaces across the globe from which it advises a lot of the Fortune 500 firms in addition to authorities businesses, together with these in authoritarian nations similar to China and Saudi Arabia.
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