McKinsey consulting firm to pay $230M in recent US opioid settlements.
Consulting Firm McKinsey & Co. to Pay $230 Million in Opioid Lawsuit Settlement
McKinsey & Co., a renowned consulting firm, has reached a groundbreaking agreement to pay $230 million in settlements to hundreds of U.S. local governments and school districts. These entities have accused McKinsey of contributing to the opioid addiction crisis through its work with Purdue Pharma, the bankrupt maker of OxyContin, and other pharmaceutical companies.
The settlements, which are pending judicial approval, were revealed in documents filed in federal court in San Francisco. This payment is in addition to the $641.5 million that McKinsey has already paid to resolve claims by state attorneys-general.
Under the terms of the settlement, McKinsey will pay $207 million to counties and municipalities, and an additional $23 million to public school districts. While McKinsey had previously announced its intention to settle the cases, the exact amount had not been disclosed until now.
Aelish Baig, the lawyer representing the affected local governments, hailed the settlement as “a strong outcome for the communities harmed by this crisis.”
While McKinsey has not admitted any wrongdoing, the firm stated that it still believes its past work was lawful. It also emphasized that it had made a commitment in 2019 to cease advising clients on any opioid-related business.
Thousands of lawsuits have been filed by states, local governments, and Native American tribes, accusing drug companies of downplaying the risks of opioid painkillers. Distributors and pharmacies have also been accused of turning a blind eye to red flags indicating illegal trafficking.
According to the plaintiffs’ lawyers, these legal actions have resulted in settlements exceeding $51 billion. Major drug manufacturers and the largest distributors in the nation have already reached agreements.
The lawsuits specifically alleged that McKinsey, a leading global consulting firm, played a role in the deadly drug crisis by assisting drug manufacturers, including Purdue Pharma, in devising deceptive marketing strategies to boost painkiller sales.
From 1999 to 2021, opioid-related overdoses, both from prescription and illicit drugs, claimed the lives of nearly 645,000 people in the United States, as reported by the U.S. Centers for Disease Control and Prevention.
Last month, the U.S. Supreme Court agreed to hear a challenge by President Joe Biden’s administration regarding Purdue Pharma’s multi-billion-dollar bankruptcy settlement, which resolves related claims against the drugmaker.
By Nate Raymond
What allegations have been made against McKinsey & Co. in relation to the opioid addiction crisis?
Consulting firm McKinsey & Co. has agreed to pay $230 million in settlements to hundreds of U.S. local governments and school districts in relation to its work with Purdue Pharma, the bankrupt maker of OxyContin, and other pharmaceutical companies. The settlements, which are pending judicial approval, were disclosed in documents filed in federal court in San Francisco.
The accusations against McKinsey relate to its alleged contribution to the opioid addiction crisis. Many local governments and school districts have claimed that the consulting firm played a role in promoting the sale and distribution of opioids, thus exacerbating the crisis. These entities argue that McKinsey’s work with Purdue Pharma and other pharmaceutical companies influenced their marketing and sales practices, leading to the widespread misuse and addiction to opioids.
The $230 million settlement is in addition to the $641.5 million that McKinsey has already paid to resolve claims by state attorneys-general. This significant amount reflects the firm’s acknowledgement of its alleged involvement and its commitment to addressing the consequences of its actions.
According to the terms of the settlement, McKinsey will pay $207 million to counties and municipalities, and an additional $23 million to public school districts. While it had been previously announced that McKinsey intended to settle the cases, the exact amount had not been disclosed until now.
This groundbreaking settlement represents a significant step towards holding corporations accountable for their role in contributing to the opioid crisis. It sends a message that companies cannot prioritize profit over public health and safety. By resolving these lawsuits, McKinsey is taking responsibility for its actions and providing financial compensation to those affected by the opioid epidemic.
The opioid crisis has had devastating effects on communities across the United States, resulting in countless lives lost and significant societal and economic burdens. It is crucial that all parties involved, including consulting firms and pharmaceutical companies, face consequences for their actions and take steps to address the damage caused.
In conclusion, McKinsey & Co.’s agreement to pay $230 million in settlements represents a significant development in the fight against the opioid crisis. This settlement not only provides financial compensation to affected communities but also underscores the need for corporate accountability in addressing public health crises. It is a step towards justice and healing for those impacted by the opioid epidemic, and it serves as a reminder that all entities involved in damaging public health must be held responsible for their actions.
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