McKinsey & Co. will pay $650 million to settle federal charges tied to its work with Purdue Pharma, helping market the opioid OxyContin, U.S. prosecutors announced Friday. The agreement resolves conspiracy, obstruction, and False Claims Act allegations, marking one of the most significant settlements related to the opioid crisis.
Deferred Prosecution Agreement Reached
The consulting firm entered a five-year deferred prosecution agreement (DPA) with the U.S. Attorney’s Offices for the Western District of Virginia and Massachusetts, alongside the Department of Justice (DOJ). The settlement includes forfeiture of $93 million in fees McKinsey earned from Purdue and prohibits McKinsey from engaging in future marketing of controlled substances.
The DPA also mandates that McKinsey develop an enhanced compliance program and submit to government oversight from the DOJ and Department of Health and Human Services.
In a statement, McKinsey expressed remorse: “We should have appreciated the harm opioids were causing in our society and should not have undertaken sales and marketing work for Purdue Pharma.”
Work with Purdue Pharma Under Scrutiny
Between 2004 and 2019, McKinsey’s Pharmaceutical and Medical Products practice collaborated with Purdue on 75 projects, using data analytics to boost OxyContin sales. This relationship persisted even after Purdue executives admitted to federal charges for misleading marketing practices.
