Caymans Post

A world within. A state apart.
Saturday, Apr 20, 2024

Buying justice: McKinsey agrees $600m settlement to escape criminal charges over role in fatal opioids crisis

Buying justice: McKinsey agrees $600m settlement to escape criminal charges over role in fatal opioids crisis

Company expresses ‘deep regret’ for consulting businesses on how to sell more prescription painkillers amid a nationwide crisis

The McKinsey business consultancy has agreed to pay nearly $600m for its role in consulting businesses on how to sell more prescription opioid painkillers amid a nationwide overdose crisis.

“We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic unfolding in our communities,” McKinsey global managing partner Kevin Sneader said in a statement on Thursday, adding “with this agreement, we hope to be part of the solution to the opioid crisis in the US.”


Most of the money is in a $573m settlement reached with 47 states, the District of Columbia and five US territories, but the company said it had deals with a total of 49 states.

Washington’s attorney general announced a separate $13.5m deal, and West Virginia has an opioid-related announcement scheduled for Thursday.

The only remaining state that has not announced a deal with the company is Nevada.

Most of the payments will come within the next two months under the multi-state agreement.

The payments are earmarked for abating the raging overdose and addiction crisis that has deepened during the coronavirus pandemic.

Opioids, which include prescription drugs such as OxyContin and its generic cousins based on the narcotic active ingredient oxycodone, and illegal substances such as heroin and illicit fentanyl, have been linked to more than 470,000 deaths in the US since 2000.

“Even though no amount of money can bring back the lives lost, I hope our settlement provides funding for programs to help those battling opioid addiction,” Arizona’s attorney general, Mark Brnovich, said in a statement.

McKinsey’s role in the opioid crisis came into focus in recent months in legal documents that were made public as part of the OxyContin maker Purdue Pharma’s efforts to settle claims against it through a bankruptcy court in New York.

They showed the company long worked with Purdue to boost sales even as the extent of the opioid epidemic became clear.

Some documents showed it was trying to “supercharge” flagging OxyContin sales in 2013.

Its efforts over the years included encouraging Purdue sales representatives to focus on doctors who already prescribed high volumes of OxyContin and to try to move patients to more potent doses of the drug.

On a video call with journalists on Thursday, the North Carolina attorney general, Josh Stein, said that McKinsey worked for Purdue for 15 years.

“McKinsey’s efforts worked. The number of pills prescribed, Purdue’s profits and McKinsey’s fees all skyrocketed,” said Stein, whose state stands to receive nearly $19m in the settlement. “But so did the number of overdoses.”

Stein said the settlement funds could go toward addiction treatment in healthcare settings as well as in jails plus programs like needle exchanges aimed at reducing the harm of drug use.

In a statement, the New Jersey attorney general, Gurbir Grewal, said that McKinsey would pay out more than it made advising companies on opioid sales.

“We are continuing to deliver on our promise to hold accountable the corporations and executives whose bad acts contributed to the opioid epidemic that has brought so much despair to our communities,” he said.

Under the multi-state deal, McKinsey agreed to make public all its communications with Purdue plus those dealing with the opioid businesses of the pharmaceutical companies Endo, Johnson & Johnson and Mallinckrodt.

The company, which announced two years ago that it would not advise clients on opioid-related businesses, said it has terminated two of its partners for communicating about deleting documents.

Other settlements have happened or are in the works, including with Purdue, which is attempting to settle with state and local governments after reaching a deal last year to plead guilty to federal criminal charges and settle a civil case.

Separately, certain members of the Sackler family who own the company, agreed to pay $225m in a civil settlement, but admitted no wrongdoing.

Another settlement has long been in the works involving the largest US drug distribution companies and Johnson & Johnson.

On the call on Thursday, the California attorney general, Xavier Becerra, called them collectively “the opioid machine”.

Newsletter

Related Articles

Caymans Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×