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Monday, February 26, 2024
HomeBusinessMcKinsey Consulting Settles US Opioid Lawsuit, Pays $230M

McKinsey Consulting Settles US Opioid Lawsuit, Pays $230M

Consulting firm McKinsey & Co has reached a settlement agreement to pay $230 million to resolve multiple lawsuits filed by hundreds of local governments and school districts in the United States. These lawsuits alleged that McKinsey played a role in the opioid addiction epidemic through its work for Purdue Pharma LP, the maker of OxyContin, and other pharmaceutical companies. The settlements, which are subject to court approval, were disclosed in documents filed in federal court in San Francisco. This payment is in addition to the $641.5 million McKinsey has already paid to settle claims made by state attorneys-general.

Under the terms of the settlements, McKinsey will pay $207 million to address claims by counties and municipalities, and an additional $23 million to resolve claims made by public school districts. It is important to note that McKinsey is not admitting any wrongdoing as part of these settlements. The consulting firm had previously acknowledged reaching settlement agreements but had not revealed the monetary amounts involved. McKinsey has not yet responded to requests for comment on this matter.

The opioid crisis has resulted in thousands of lawsuits filed against drug companies, distributors, and pharmacies by states, local governments, and Native American tribes. These lawsuits accuse the companies of downplaying the risks associated with opioid painkillers, as well as distributors and pharmacies of ignoring signs of illegal trafficking. Thus far, settlements totaling over $51 billion have been reached in this litigation. McKinsey, as one of the leading consulting firms worldwide, has been accused in these lawsuits of contributing to the crisis by assisting drug manufacturers, including Purdue Pharma, in developing deceptive marketing strategies to increase painkiller sales. According to the U.S. Centers for Disease Control and Prevention, opioid-related overdoses have claimed the lives of almost 645,000 people in the United States between 1999 and 2021.

In related news, the U.S. Supreme Court recently agreed to hear a challenge from President Joe Biden’s administration regarding the multi-billion-dollar bankruptcy settlement reached with Purdue Pharma. This settlement aims to resolve various claims against the drugmaker.

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