McKinsey Agrees to $78 Million Settlement in Prescription Opioid Crisis

McKinsey and Company has reached a $78 million settlement to address financial impacts stemming from the prescription opioid crisis. This agreement, pending judicial approval in a San Francisco federal court, involves establishing a fund to compensate insurers, private benefit plans, and others for costs incurred due to prescription opioids.

Insurers had accused McKinsey of collaborating with Purdue Pharma, the maker of OxyContin, to aggressively market these addictive drugs, often sidelining safer and more affordable alternatives. This resulted in insurers bearing the cost of not only the opioids but also subsequent addiction treatments. The US Centers for Disease Control reports that approximately 280,000 people in the US died from prescription opioid overdoses between 1999 and 2021.

This settlement is part of McKinsey’s broader effort to resolve legal challenges related to the opioid crisis. In 2021, the firm agreed to pay nearly $600 million to various US states, the District of Columbia, and five territories. Additionally, in September 2023, McKinsey reached a $230 million settlement with school districts and local governments.

While McKinsey maintains that its past work was lawful and denies any wrongdoing, the company opted for this settlement to avoid prolonged litigation. This development is a significant step in addressing the extensive financial and health repercussions of the opioid crisis in the United States.