McKinsey Settles DOJ Probe Over Opioid Consulting Scandal

McKinsey & Co has agreed to pay $650 million to settle charges related to its role in advising opioid maker Purdue Pharma. The firm entered a deferred prosecution agreement to address accusations of conspiring to misbrand a drug and obstruction of justice, contributing to the opioid epidemic.

McKinsey & Co is set to pay $650 million to resolve a U.S. Department of Justice investigation. The case concerns the consulting firm's advisory role with opioid manufacturer Purdue Pharma, known for producing OxyContin. McKinsey entered a five-year deferred prosecution deal in an effort to address criminal charges tied to the promotion of addictive painkillers, central to the opioid crisis.

Accusations against McKinsey include coaching Stamford-based Purdue on strategies to increase OxyContin sales, leading to charges of conspiring to misbrand a drug and obstructing justice. A former senior partner, Martin Elling, is set to plead guilty to obstruction of justice for erasing pertinent records concerning McKinsey's advice to Purdue, with a court appearance scheduled for January 10.

The settlement sees McKinsey committing to bolster its compliance protocols and agree to oversight by federal authorities. Additionally, the firm resolves a civil investigation into potential False Claims Act breaches. Purdue, having pleaded guilty in 2020 to substantial misconduct related to opioid promotion, continues mediation regarding a multibillion-dollar settlement to address the crisis's fallout.

(With inputs from agencies.)