McKinsey & Co is under scrutiny in the United States for its alleged involvement in exacerbating the opioid crisis.
The consulting firm is facing a criminal investigation, with federal prosecutors focusing on its advice to OxyContin maker Purdue Pharma and other drug manufacturers.
The probe is examining whether McKinsey played a role in promoting the sales of prescription painkillers, which contributed to widespread addiction and fatal overdoses.
The investigation also explores whether McKinsey committed healthcare fraud by providing consulting services that led to fraudulent claims being made to government programs like Medicare.
Prosecutors are looking into allegations of obstruction of justice related to the deletion of documents pertaining to McKinsey’s work on opioids.
The Justice Department‘s inquiry, spanning offices in Washington, Massachusetts, and Virginia, has been ongoing for several years.
Discussions are underway between both parties to potentially resolve the probe. However, investigations do not indicate wrongdoing, and outcomes could range from criminal charges to civil penalties or no action.
This investigation underscores the lasting repercussions of McKinsey’s past involvement in advising drugmakers on opioids.
Unlike previous government inquiries that resulted in settlements, this probe carries the potential for criminal charges against the company or its executives, as well as significant financial penalties.
McKinsey previously settled numerous opioid-related lawsuits for nearly $1 billion without admitting liability. In 2019, the firm announced it would cease advising clients on opioid-related businesses, acknowledging shortcomings in its past work.
Meanwhile, Purdue Pharma, implicated in the crisis, pleaded guilty to criminal charges in 2020 and filed for bankruptcy in 2019.
The company negotiated a $10 billion settlement to resolve thousands of lawsuits, which is pending Supreme Court review due to a challenge by the Biden administration.
Prosecutors have not reached any charging decisions, as they sift through extensive documents and engage with McKinsey’s legal team.
