McKinsey's Costly Apology: A $650 Million Settlement in Opioid Crisis

McKinsey & Company agreed to a $650 million settlement with the US Justice Department to avoid prosecution for aiding Purdue Pharma in boosting OxyContin sales. The settlement includes conditions to stop consulting on controlled substances. It marks a significant accountability step in the opioid epidemic.

McKinsey & Company has reached a $650 million settlement with the US Justice Department over its role in promoting Purdue Pharma's opioid, OxyContin. The agreement allows McKinsey to avoid criminal charges, provided it ceases work relating to controlled substances for five years.

The settlement also involves a former McKinsey senior partner pleading guilty to obstruction of justice. The deal highlights McKinsey's involvement in identifying prescribing patterns that would maximize OxyContin sales, a tactic that federal prosecutors argue was part of the broader opioid crisis strategy.

Federal officials have characterized this settlement as a first-of-its-kind accountability measure against a management consulting firm for advising on illegal conduct. It underscores the significant financial repercussions for McKinsey, already part of larger settlements with state and local governments.

(With inputs from agencies.)