The US Department of Justice is currently conducting a criminal investigation into McKinsey consulting firm’s past involvement in providing advice to some of the nation’s largest opioid manufacturers. The focus of the investigation is on how the firm may have helped these companies increase sales.
The investigation has been ongoing for several years, with a grand jury empaneled in Virginia. The US Attorney’s Offices for the Western District of Virginia and the District of Massachusetts are jointly conducting the investigation. McKinsey has chosen not to comment on the matter.
Former McKinsey clients, such as Purdue Pharma, Endo International, and Mallinckrodt, faced lawsuits alleging deceptive marketing practices and fueling addiction, eventually filing for bankruptcy. These companies hired McKinsey consultants to advise them on strategies to boost sales, including targeting high-prescription writers and reducing focus on low-prescription writers.
In 2021, McKinsey settled with all 50 states, the five territories, and Washington, D.C., agreeing to pay $642 million to resolve opioid-related civil lawsuits without admitting liability. However, prosecutors are now looking into whether McKinsey or its employees obstructed legal proceedings related to their consulting services to opioid manufacturers.
McKinsey has stated that it stopped working with opioid-specific businesses in 2019 and aimed to support the legal use of opioids for legitimate medical needs. However, previous civil lawsuits against the consulting firm have accused it of exacerbating opioid addiction by providing advice that boosted sales for drugmakers like Purdue, Endo International, and Mallinckrodt. These investigations have led to settlements and guilty pleas from pharmaceutical companies connected to McKinsey’s consulting services.
