Summarised by Centrist
McKinsey & Company has agreed to pay USD $650m (NZD $1.13b) in a deferred prosecution deal to resolve a US federal criminal probe into its consulting work for Purdue Pharma, helping boost sales of OxyContin. Court filings allege McKinsey knowingly conspired with Purdue to “aid and abet the misbranding” of opioids.
Former McKinsey partner Martin Elling will plead guilty to obstruction of justice for destroying documents to impede the Department of Justice investigation. The agreement bars McKinsey from engaging in future marketing or promotion of controlled substances.
McKinsey, which has already paid nearly USD $1b (NZD $1.74b) in settlements to states and local governments, accepted responsibility for its role. “We should have appreciated the harm opioids were causing in our society,” the firm admitted, expressing “profound regret” for its work with Purdue.
The settlement includes a related False Claims Act investigation and requires McKinsey to comply with a Corporate Integrity Agreement overseen by the Department of Health and Human Services.
