McKinsey Nears $500 Million Settlement With DOJ Over Opioid Probe

McKinsey is going to be paying "at least $500 million" to settle probes into the company about its role in helping opioid makers boost their sales. 

The settlement would add to penalties McKinsey has already paid to U.S. states for its work with opioid manufacturers, according to Bloomberg. 

In 2021, the firm agreed to pay hundreds of millions to settle claims it contributed to the opioid crisis through sales analysis and marketing advice. McKinsey, which reported $16 billion in revenue last year, denied wrongdoing, stating its work was legal and that it stopped consulting for opioid makers in 2019.

Last May, McKinsey said in a statement: “Our past work for opioid manufacturers, while lawful, fell short of the high standards we set for ourselves. We have implemented a rigorous client selection policy and spent approximately $1 billion building, enhancing, and operating our risk, legal, and compliance functions since 2018.”

The Bloomberg report says that Federal prosecutors in Boston, Roanoke, and Washington are leading the Justice Department’s investigation.

McKinsey recently proposed a $230 million settlement with cities and states, approved by a U.S. judge, though the firm still faces legal risks over its opioid-related work, Bloomberg Law reported. 

Since 1999, nearly 645,000 people have died from opioid overdoses, with deaths surging in the 2010s and accelerating further during the Covid-19 pandemic due to synthetic opioids.

Thousands of state and local governments are pursuing claims against opioid makers and distributors to recover billions in public funds spent addressing the crisis.

A settlement expected in the coming weeks would resolve the Justice Department's criminal and civil investigations, though the terms remain confidential and subject to change.