Criminal Investigation into McKinsey & Company for Opioid Consulting | 27% Profit Every 20 Days?

The U.S. Department of Justice has launched a criminal investigation into consulting firm McKinsey & Company for its involvement in advising major opioid manufacturers on increasing sales. The investigation, which has been ongoing for several years, has led to the formation of a grand jury in Virginia, with the U.S. attorney’s offices in the Western District of Virginia and the District of Massachusetts jointly conducting the probe.

McKinsey’s advice to pharmaceutical clients, including Purdue, Endo International, and Mallinckrodt, has come under scrutiny, as the firm allegedly played a role in advising these companies on how to boost sales of opioids. This has led to a wave of civil litigation against the firm, with McKinsey reaching a $642 million settlement with all 50 states and other entities in 2021, without admitting wrongdoing.

The firm’s former clients, Purdue, Endo, and Mallinckrodt, faced bankruptcy while facing lawsuits alleging they sold drugs through misleading marketing practices, exacerbating addiction. McKinsey reportedly helped Purdue develop an initiative to increase OxyContin sales, including advising the company to focus on high-volume prescribers.

McKinsey has stated that it ceased work on opioid-specific businesses in 2019 and that its work for Purdue was intended to support the legal use of opioids and patients with legitimate medical needs. The firm has not yet responded to requests for comment from Benzinga.

The criminal investigation into McKinsey’s opioid-related consulting is a significant development in the legal battle surrounding the opioid epidemic. This investigation follows similar actions against other entities involved in the crisis, including a recent $350 million settlement with advertising firm Publicis Groupe over its alleged role in the epidemic.

The Supreme Court also temporarily suspended a multi-billion-dollar bankruptcy agreement involving Purdue Pharma, the producer of OxyContin, which would have shielded the company’s Sackler family owners from civil lawsuits linked to the opioid epidemic.

Overall, the investigation into McKinsey’s consulting practices highlights the ongoing efforts to hold accountable those involved in the opioid crisis and seek justice for those affected by the epidemic.