McKinsey & Co. Agrees to Pay $78 Million in Opioid Epidemic Settlement
Consulting firm McKinsey & Co. has reached a $78 million settlement to resolve claims made by U.S. health insurers and benefit plans regarding its involvement in fueling the opioid addiction epidemic. The settlement, disclosed in federal court in San Francisco, marks the final resolution of lawsuits against McKinsey related to the U.S. opioid crisis.
Accusations Against McKinsey
Plaintiffs accused McKinsey, a leading global consulting firm, of contributing to the deadly drug crisis by assisting drug manufacturers, including Purdue Pharma, in designing deceptive marketing plans and increasing sales of painkillers.
Previous Settlements
McKinsey has previously paid $641.5 million to settle claims made by state attorneys general, as well as an additional $230 million to resolve claims made by local governments. The firm has also settled cases brought by Native American tribes.
Class Action Settlement
The recent class action settlement, which is subject to judicial approval, resolves claims made by third-party payers such as insurers that provide health and welfare benefits.
Statement from Plaintiffs’ Lawyer
Paul Geller, a lawyer representing the plaintiffs, stated that the drug crisis was caused by an oversupply of dangerous addictive drugs, and the purpose of the case was to recover some of the money spent on over-prescribed pills.
McKinsey’s Response
McKinsey did not admit any wrongdoing and stated that it continues to believe its past work was lawful. The firm also highlighted its commitment in 2019 to no longer advise clients on any opioid-related business.
Ongoing Litigation
Thousands of lawsuits have been filed against drug companies, distributors, and pharmacies by states, local governments, and Native American tribes. These lawsuits accuse the companies of downplaying the risks of opioid painkillers and ignoring red flags of illegal trafficking. The litigation has resulted in over $50 billion in settlements with drugmakers, distributors, and pharmacy chains.
Opioid Epidemic Statistics
According to the U.S. Centers for Disease Control and Prevention, nearly 645,000 people died in the United States from opioid overdoses, both prescription and illicit, between 1999 and 2021.
Supreme Court Case
Earlier this month, the U.S. Supreme Court heard a challenge by President Joe Biden’s administration to Purdue Pharma’s multi-billion-dollar bankruptcy settlement, which resolves related claims against the drugmaker.
By Nate Raymond
