McKinsey Agrees to $650 Million Criminal Settlement for Role in 'Turbocharging' Opioid Sales for Purdue Pharma

McKinsey & Company agrees to pay $650 million to settle federal criminal and civil investigations into its role in helping Purdue Pharma ’turbocharge’ sales of OxyContin, the highly addictive opioid painkiller at the center of America’s overdose epidemic. This marks the first time a management consulting firm has been held criminally responsible for advice resulting in the commission of a crime by a client.

The Department of Justice charges McKinsey with knowingly and intentionally conspiring with Purdue and others to aid and abet the misbranding of prescription drugs. Prosecutors reveal that McKinsey ‘knew the risk and dangers’ of OxyContin and knew that Purdue executives had previously pleaded guilty to crimes related to promoting the drug, but decided to work with the opioid manufacturer anyway. McKinsey’s work included identifying which prescribers would generate the most additional prescriptions if Purdue salespeople focused on them.

Former McKinsey senior partner Martin Elling agrees to plead guilty to obstruction of justice charges for personally deleting Purdue-related electronic materials from his McKinsey laptop with intent to obstruct future investigations. The settlement includes $324 million in criminal fines and forfeitures (including $93 million to recover fees Purdue paid McKinsey from 2004-2019) plus over $323 million in civil penalties for False Claims Act violations.

The resolution also addresses McKinsey’s conflict of interest fraud: from 2014 to 2017, McKinsey allowed consultants to work simultaneously on FDA and Purdue projects, breaching its own conflict-of-interest policy. As part of a five-year deferred prosecution agreement, McKinsey agrees to refrain from any future work involving controlled substances including opioids and face closer federal oversight. McKinsey states the opioid work ‘will always be a source of profound regret for our firm,’ but the settlement reveals how consulting firms prioritize profits over public health with devastating consequences.