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McKinsey Nears Settlement in Opioid-Related Investigation
McKinsey & Company is reportedly close to finalizing a deferred prosecution agreement as part of a US criminal investigation regarding its role in advising opioid manufacturers. This work is alleged to have significantly contributed to the ongoing opioid addiction crisis in the United States, according to sources familiar with the matter.
As negotiations progress, McKinsey is expected to pay over $600 million to settle the longstanding investigation led by the US Department of Justice, which also includes allegations of civil violations.
The anticipated settlement, which may be announced before the year’s end, would involve prosecutors agreeing to dismiss criminal charges against McKinsey, provided the firm adheres to the terms set forth in the agreement over the agreed-upon period.
While discussions are active, the timeline for announcing the settlement remains uncertain, and could potentially change. Both McKinsey and the Department of Justice have opted not to comment on the ongoing negotiations.
Additionally, the investigation has examined whether McKinsey took steps to obstruct justice relating to its advisory work with opioid manufacturers. Notably, in 2021, McKinsey disclosed that it had terminated two partners following communication about potentially deleting documents relevant to the inquiry.
Previously, McKinsey engaged in settlements amounting to nearly $1 billion to address various lawsuits alleging that the firm played a role in exacerbating the opioid epidemic through its guidance to companies like Purdue Pharma, the creator of OxyContin.
These settlements encompassed all 50 states, Washington D.C., US territories, numerous local governments, health insurers, school districts, and Native American tribes, indicating the extensive scope of the related legal challenges.
In a significant policy shift, McKinsey announced in 2019 that it would cease advising clients involved in opioid-related businesses. The company has consistently asserted that none of its settlements indicate any admission of liability or wrongdoing.
Purdue Pharma pleaded guilty in 2020 to criminal charges, which included accusations of facilitating widespread misconduct concerning the management of its prescription painkillers. This included actions such as conspiracy to defraud government officials and the provision of illegal kickbacks to healthcare professionals and vendors involved in electronic health records.
Currently, Purdue is engaged in court-ordered mediation concerning a comprehensive multibillion-dollar settlement related to its bankruptcy proceedings, a plan that has faced scrutiny from the US Supreme Court.
The McKinsey investigation is being conducted by prosecutors in Boston and Roanoke, Virginia, alongside officials from the Department of Justice in Washington, D.C.
Source
www.theguardian.com