Elite global firm McKinsey in US Justice Department hot chair over Opioid crisis
Consultancy firm McKinsey has been placed under criminal investigation in the US over its role in the country’s Opioid crisis.
The elite firm is in the spotlight over its work advising OxyContin creator Purdue Pharma and other drugmakers. Oxycontin-maker Purdue Pharma was reported in 2019 to be making payments between $10bn (£8bn) and $12bn (£9.5bn) to settle more than 2,000 lawsuits over its role in the Opioid crisis.
The disgraced manufacturer filed for bankruptcy in 2019 after it admitted that the company would be unable to withstand the mass lawsuits against it. The company was painted as one of the biggest culprits in the US opioid epidemic which is estimated to have killed nearly 400,000 people between 1999 and 2017.
Now, there is an inquiry focused on whether McKinsey engaged in a criminal conspiracy when advising Purdue and other manufacturers on marketing strategies to boost sales of prescription painkillers.
According to The Wall Street Journal, the US Justice Department is also investigating whether the firm conspired to commit healthcare fraud.
The investigation was opened up several years ago, involving the Justice Department officials across Washington, Massachusetts and Virginia,
The consulting firm and the US Justice Department declined to comment to the US paper.
McKinsey revealed in February 2021 that it had reached a $600m settlement with 49 State Attorneys Generals, five territories and the District of Columbia for its role in the Opioid crisis.
As part of the agreement, the Attorneys General recognised McKinsey’s “good faith and responsible corporate citizenship in reaching this resolution”. However, these settlement agreements themselves contain no admission of wrongdoing or liability.