Chicago’s McKinsey to pay $600 million to settle US probe on opioid crisis

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Chicago’s McKinsey to pay $600 million to settle US probe on opioid crisis

McKinsey & Co., the 95-year-old American multinational management and consultancy firm, said later this week that the Chicago-based consultancy company employing more than 27,000 workers across the globe, had agreed to lay off a lump-sum of $600 million which in effect would insulate the consultancy firm from investigations by most US States over its alleged role to fuel up an opioid epidemic in the country that reportedly had taken at least half a million lives since 1998.

On top of that, McKinsey & Co was also quoted saying that the management & consultancy firm had cut a $573 million settlement deal with 47 US states alongside the District of Columbia and five other regions that would push forth towards opioid treatment and prevention, while the company had reached separate deals with the US State of West Virginia and Washington.

McKinsey & Co reaches $600 million deal with US states

In point of fact, latest move from McKinsey & Co came forth as a majority of US states had accused the consultancy firm of “turbocharging” an opioid epidemic in the United States by helping drugmakers sketch out a marketing plan for their highly abusive opioid painkillers which reportedly have been leading to the death an American in every five minutes.

Besides, the States had also alleged that the consultancy firm had been linked to creating a marketing plan for the Oxycontin-maker Perdue Pharma, owned by a rich Sackler family, which went bankrupt last year and plead guilty to fuelling up an opioid epidemic in the country in November 2020.

Nonetheless, Kevin Sneader, the Global Managing Partner for McKinsey that did not admit any wrongdoing, but had pledged to continue internal investigations on two of its employees who had tried to destroy documents related to Perdue Pharma, said in a statement, “We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic”.

Meanwhile, scolding McKinsey & Co, a consultancy firm founded back in the 1926s in Chicago by James O. McKinsey, a professor of accountancy in University of Chicago, over its alleged role in intensifying an opioid epidemic in the US, California Attorney General Xavier Becerra, US President Biden’s nominee for the Chief of US Department of Health and Human Services, said following the announcement, “They were part of a machine that disrupted, in fact destroyed, lives and families in America”.