McKinsey's $650 Million Settlement Amid Opioid Crisis

McKinsey & Co has agreed to a $650 million settlement with the U.S. Department of Justice over its advisory role to Purdue Pharma in opioid sales. The firm faces deferred prosecution for criminal charges related to the opioid crisis. Former partner Martin Elling to plead guilty for obstruction.

McKinsey & Co is set to pay $650 million to settle a U.S. Department of Justice probe into the consulting firm's advisory role to OxyContin maker Purdue Pharma. The settlement resolves charges that McKinsey conspired to misbrand a drug and obstructed justice.

The charges stem from McKinsey's work advising Purdue on strategies to increase OxyContin sales, a drug central to the opioid epidemic. Martin Elling, a former senior partner, has agreed to plead guilty to obstruction of justice for destroying documents related to McKinsey's work.

Despite earlier settlements nearing $1 billion addressing similar allegations, McKinsey has not admitted any wrongdoing. The controversy involves multiple states, local governments, and Native American tribes, emphasizing the widespread impact of the opioid crisis.

(With inputs from agencies.)