Management consulting firm McKinsey & Co has agreed to pay $573 million U.S. to resolve claims by 40-plus American states related to its role in the opioid epidemic and advice it gave to OxyContin maker Purdue Pharma.
McKinsey’s settlement is with 43 states, the District of Columbia and three territories, according to the company. McKinsey had previously come under scrutiny for its role advising Purdue Pharma and the wealthy Sacklers family that owns the drugmaker.
A lawsuit by the Massachusetts Attorney General’s office alleged that McKinsey advised the Sacklers on how to "turbocharge" opioid sales. Purdue filed for bankruptcy in 2019 as part of a proposed settlement it valued at $10 billion to resolve lawsuits alleging its painkiller marketing helped fuel the epidemic.
More than 3,200 lawsuits are pending, seeking to hold drug makers, distributors and pharmacies responsible for an opioid addiction epidemic that, according to U.S. government, caused 450,000 overdose deaths from 1999 to 2018.
The lawsuits accuse drug makers of deceptively marketing opioids and distributors of ignoring red flags indicating the prescription painkillers were being diverted for improper uses. U.S. state and local governments have also been in negotiations for settlements with drug distributors Cardinal Health (NYSE:CAH), McKesson (NYSE:MCK) and AmerisourceBergen (NYSE:ABC), as well as drug maker Johnson & Johnson (NYSE:JNJ).
