McKinsey and Co. agrees to $78 million settlement over claims

McKinsey and Co. agrees to $78 million settlement over claims it helped gas opioid disaster

Bottles of prescription painkiller OxyContin drugs, made by Purdue Pharma, sit on a shelf at a neighborhood pharmacy, in Provo, Utah, April 25, 2017. File picture by George Frey/REUTERS

Consulting agency McKinsey and Co. has agreed to pay $78 million to settle claims from insurers and well being care funds that its work with drug corporations helped gas an opioid dependancy disaster.

The settlement was revealed late Friday in paperwork filed in federal court docket in San Francisco. The settlement should nonetheless be authorized by a decide.

Underneath the settlement, McKinsey would set up a fund to reimburse insurers, non-public profit plans and others for some or all of their prescription opioid prices.

WATCH: How McKinsey has influenced corporations and governments behind the scenes for many years

The insurers argued that McKinsey labored with Purdue Pharma – the maker of OxyContin – to create and make use of aggressive advertising and marketing and gross sales ways to beat medical doctors’ reservations in regards to the extremely addictive medication. Insurers mentioned that pressured them to pay for prescription opioids fairly than safer, non-addictive and lower-cost medication, together with over-the-counter ache treatment. Additionally they needed to pay for the opioid dependancy remedy that adopted.

From 1999 to 2021, practically 280,000 individuals within the U.S. died from overdoses of prescription opioids, in accordance with the U.S. Facilities for Illness Management. Insurers argued that McKinsey labored with Purdue Pharma even after the extent of the opioid disaster was obvious.

The settlement is the newest in a years-long effort to carry McKinsey accountable for its function within the opioid epidemic. In February 2021, the corporate agreed to pay practically $600 million to U.S. states, the District of Columbia and 5 U.S. territories. In September, the corporate introduced a separate, $230 million settlement settlement with faculty districts and native governments.

Requested for remark Saturday, McKinsey referred to a press release it launched in September.

“As now we have said beforehand, we proceed to consider that our previous work was lawful and deny allegations on the contrary,” the corporate mentioned, including that it reached a settlement to keep away from protracted litigation.

McKinsey mentioned it stopped advising shoppers on any opioid-related enterprise in 2019.

Left:
Bottles of prescription painkiller OxyContin drugs, made by Purdue Pharma, sit on a shelf at a neighborhood pharmacy, in Provo, Utah, April 25, 2017. File picture by George Frey/REUTERS

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