McKinsey & Co, a prominent consulting firm, is currently facing a criminal investigation by the US Justice Department regarding its alleged involvement in exacerbating the opioid epidemic. Federal prosecutors are particularly focusing on McKinsey's advisory role with OxyContin manufacturer Purdue Pharma and other pharmaceutical companies, according to three sources familiar with the matter.
Both McKinsey & Co. and the US Justice Department declined to provide comments on the ongoing investigation.
The probe is honing in on whether McKinsey participated in a criminal conspiracy by advising Purdue and other drug manufacturers on marketing strategies aimed at increasing sales of prescription painkillers, which ultimately resulted in widespread addiction and fatal overdoses. Additionally, investigators are examining whether McKinsey may have committed healthcare fraud by providing consulting services that led to fraudulent claims being submitted to government programs such as Medicare.
Furthermore, the Justice Department is looking into potential obstruction of justice related to McKinsey's disclosure that two partners were terminated for communicating about the deletion of documents linked to their work on opioids.
This investigation initiated several years ago before the global pandemic, involves Justice Department officials across offices in Washington, Massachusetts, and Virginia. Discussions are ongoing between both parties to resolve the probe.
It's important to note that investigations do not indicate wrongdoing, and prosecutors may pursue various actions, including criminal charges, civil sanctions, or closing the investigation without taking further action.
This scrutiny underscores how McKinsey's past involvement in advising drugmakers on opioids continues to impact the firm. The potential for criminal charges against the company or its executives, along with substantial financial penalties, elevates the stakes of this investigation compared to previous government inquiries McKinsey has faced.
McKinsey previously reached nearly $1 billion in settlements to resolve opioid-related lawsuits brought by various entities, including states, territories, local governments, and health insurers. Despite these settlements, McKinsey has not admitted to any liability or wrongdoing.
In response to the scrutiny surrounding its past client service to opioid manufacturers, McKinsey stated in 2022 that while its work was lawful, it fell short of the firm's high standards. Purdue Pharma, which pleaded guilty to criminal charges related to its handling of opioid painkillers in 2020, did not immediately respond to requests for comment.
Prosecutors have yet to make any charging decisions in their criminal investigation of McKinsey, as they continue to review extensive documentation and engage in discussions with the firm's legal representatives.
