McKinsey Settles Opioid Investigation for $650 Million

McKinsey & Company will pay $650 million to settle a federal investigation into its work with Purdue Pharma. To avoid criminal charges, McKinsey must abide by conditions including stopping work on controlled substances. This follows its big role in advising on opioid sales amid a national crisis.

McKinsey & Company, a well-known consulting firm, has consented to pay $650 million to settle a federal investigation relating to its consultations with the opioid manufacturer, Purdue Pharma, according to court filings in Virginia. This development was announced on Friday.

As part of an agreement with the U.S. Justice Department, McKinsey will not face criminal charges if it complies with several conditions over a five-year period. These conditions include ceasing any involvement in the sale, marketing, or promotion of controlled substances, as indicated in the court documents.

In a related development, a former McKinsey senior partner has agreed to plead guilty to obstruction of justice after deleting relevant documents during investigations concerning Purdue Pharma. McKinsey's longtime consultancy led to Purdue receiving strategies on boosting revenue from OxyContin, despite medically unsafe prescriptions.

(With inputs from agencies.)