McKinsey consulting firm probed by DOJ over role advising opioid manufacturing pharma companies

The Department of Justice (DOJ) has undertaken a criminal investigation into McKinsey & Co, alleging that the consulting firm helped exacerbate the opioid crisis in the United States.

Federal prosecutors have argued that McKinsey advised the pharmaceutical giants that manufacture the drugs, most of whom have since filed for bankruptcy, on how they could push more product on the American people.

According to the Wall Street Journal, while the DOJ and McKinsey both refused to comment, sources have revealed that proceedings, which have been ongoing for years, are moving along.

The investigation, the sources said, is being conducted by US attorney's offices in Massachusetts and Virginia. In the latter, a grand jury has been empaneled.

In addition to whether McKinsey's consulting services for companies such as Purdue, Endo International, and Mallinckrodt worsened the opioid crisis, the criminal inquiry seeks to uncover whether the company or its employees interfered with records related to the partnerships in ways that constitute obstruction of justice.

As the Wall Street Journal reports, in August 2013, McKinsey consultants provided Purdue executives with 20 recommendations as to how they could increase sales of OxyContin by over $100 million per year by targeting those who use the most. The firm claimed this referred to those who legally consume the highly addictive drug for medical reasons. Consultants also urged Purdue and Endo International to target the US Department of Veterans Affairs to boost sales.

McKinsey has faced legal ramifications for its actions in the pharmaceutical industry before, pleading guilty to felonies related to misbranding and marketing of OxyContin in 2007 and 2020, respectively.

In 2021, for example, it paid out $642 million to all 50 states, DC, and five territories in a settlement for opioid-related lawsuits. Two years later it paid out $347 million to Native American tribes, school districts, municipal governments, and insurance companies for the same reason. In neither, case, however, did they admit any wrongdoing.