McKinsey’s Past Advice to Opioid Manufacturers Now Under Criminal Investigation

McKinsey, a prominent consulting firm, is currently under criminal investigation by the US Department of Justice for its past involvement in providing advice to opioid manufacturers. The investigation focuses on whether the firm may have helped these companies increase sales through deceptive marketing practices.

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.

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, previous civil lawsuits against the consulting firm have accused it of exacerbating opioid addiction by advising drugmakers like Purdue Pharma, Endo International, and Mallinckrodt on strategies to boost sales.

Former McKinsey clients faced lawsuits alleging deceptive marketing practices and fueling addiction, eventually filing for bankruptcy. McKinsey consultants advised these companies on strategies such as targeting high-prescription writers and reducing focus on low-prescription writers. However, 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.

The rise in opioid prescriptions from companies like Purdue Pharma in the 1990s contributed to the opioid epidemic, with nearly 645,000 deaths from opioid overdoses between 1999 and 2021. Prosecutions of Purdue Pharma and Endo International have previously occurred; now investigations into McKinsey’s role in advising these companies are underway. These investigations have led to settlements and guilty pleas from pharmaceutical companies connected to McKinsey’s consulting services.

Overall, this investigation highlights how consulting firms can play a role in contributing to public health crises through their advice to corporations.