McKinsey & Company, the renowned global consulting firm, is reportedly nearing a resolution with U.S. prosecutors, potentially agreeing to pay over $500 million to settle long-running federal investigations into its involvement with opioid manufacturers. Sources familiar with the matter confirmed that the settlement would address both criminal and civil probes launched by the U.S. Department of Justice, stemming from McKinsey’s role in advising opioid producers in a controversial campaign to increase sales of addictive painkillers.
The settlement, although not finalized, is expected to resolve key investigations into McKinsey’s partnership with Purdue Pharma, the maker of OxyContin, and other pharmaceutical companies. Federal prosecutors have been scrutinizing whether McKinsey participated in criminal conspiracy by recommending marketing strategies that contributed to the opioid crisis, which has claimed hundreds of thousands of lives across the United States.
Negotiations are ongoing, and the timeline for an official announcement remains uncertain. As discussions continue, the terms of the settlement may evolve. Both McKinsey and the U.S. Justice Department have declined to comment on the specifics of the deal.
The settlement would mark the latest development in a series of legal actions against McKinsey. In 2020, the consulting firm reached agreements amounting to nearly $1 billion, settling lawsuits across all 50 states, Washington, D.C., U.S. territories, various local governments, school districts, Native American tribes, and health insurers. These settlements addressed opioid-related claims, though McKinsey maintains that none of the agreements include an admission of liability or wrongdoing.
McKinsey has previously stated that it ceased advising clients in the opioid industry in 2019, following growing scrutiny. Despite the legal challenges, the firm has continued to insist that its involvement in the opioid industry was limited to consulting services and that it did not cause the epidemic.
With this new potential settlement on the horizon, McKinsey is poised to close a significant chapter in its legal battles over its role in the opioid crisis, a crisis that has had a profound and devastating impact on communities across the nation.
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