McKinsey to Pay $230 Million to Resolve Claims About Its Consulting for Drug Companies that Fueled the Opioid Crisis

On September 26, 2023, McKinsey & Co., Inc., one of the world’s leading business consultants, agreed to pay $230 million to government subdivisions and school districts to resolve claims about its role in facilitating the U.S. opioid crisis.

The agreement resolves lawsuits by counties, school districts, and local governments in nationwide litigation seeking to hold McKinsey accountable for playing a “central role in the unfolding, propagation, and exploitation of the opioid crisis by advising multiple opioid manufacturers and other industry participants how to sell as many opioids as conceivably possible,” according to the complaint.

Partner Aelish Marie Baig, who serves on the Plaintiffs’ Steering Committee for the McKinsey litigation, told Reuters that the settlement is “a strong outcome for the communities harmed by this crisis.”

McKinsey allegedly provided consulting services to many pharmaceutical companies, including Purdue Pharma, L.P. (the manufacturer of OxyContin), Endo Pharmaceuticals, and Johnson & Johnson. The case alleges that McKinsey continued its consulting work providing the pharmaceutical industry with sales and marketing strategies to sell opioids for over a decade, despite knowing the products were highly addictive and unsafe.

McKinsey’s agreement follows a series of nationwide resolutions with opioid companies that have secured over $50 billion for communities impacted by the opioid crisis. Most of the settlement funds are reserved for abatement efforts, including treatment, recovery, and education. Distribution of the funds directly to impacted communities has commenced.

Earlier this year, the Firm, together with co-counsel, secured $230 million from Walgreens for the City and County of San Francisco to resolve its claims against the pharmacy chain for facilitating the city’s opioid crisis. Ms. Baig also served as co-lead trial counsel in the case against Walgreens.

The McKinsey settlement is subject to court approval.

Robbins Geller attorneys Paul J. Geller, Aelish Marie Baig, Dory P. Antullis, Taeva C. Shefler, and Hadiya K. Deshmukh and co-counsel represent the class of political subdivisions.

Read the Reuters article here: https://www.reuters.com/legal/consulting-firm-mckinsey-pay-230-million-latest-us-opioid-settlements-2023-09-27/

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In re McKinsey & Co., Inc. National Prescription Opiate Consultant Litigation, No. 3:21-md-02996-CRB (N.D. Cal.).