Notably, McKinsey helped Purdue secure Food and Drug Administration (FDA) approval in 2013 for a reformulated version of OxyContin, which the company claimed was harder to abuse. Internal communications cited in the settlement reveal McKinsey consultants celebrated the FDA’s decision, with one email stating, “[we] did it.”
Document Destruction Allegations Against Former Partner
As part of the settlement, McKinsey senior partner Martin Elling will plead guilty to destroying documents during the investigation. Prosecutors allege that Elling deleted files from a company laptop in 2018 after learning that Purdue was implicated in a lawsuit by the Massachusetts attorney general.
Elling reportedly advised a colleague to “eliminate all our documents and emails,” suggesting that McKinsey prepare for legal challenges. Under his plea deal, Elling faces a potential fine of $250,000 and six to 12 months in prison.
Dual Role Raises Questions
Prosecutors highlighted McKinsey’s dual involvement with Purdue and the FDA. While consulting for Purdue on cost-reduction strategies, McKinsey simultaneously worked with the FDA on its Sentinel Initiative, designed to monitor drug safety. This overlap raised ethical concerns about potential conflicts of interest.
Legal Representation and Broader Implications
McKinsey’s legal team includes attorneys from Morrison Foerster LLP, Hogan Lovells US LLP, and in-house counsel. Elling is represented by Marjorie Peerce of Ballard Spahr LLP. Federal prosecutors from multiple agencies and offices led the government’s case.
