McKinsey OKs $78-M settlement with insurers over opioids

McKinsey OKs $78-M settlement with insurers over opioids

McKinsey agrees to $78-M settlement with insurers over opioids

OxyContin drugs are organized for a photograph, Feb. 19, 2013, at a pharmacy in Montpelier, Vt. In an settlement revealed late Friday, Dec. 29, 2023, consulting agency McKinsey and Co. has agreed to pay $78 million to settle claims from insurers and well being care funds that its advertising and marketing work with Purdue Pharma, the maker of OxyContin, helped gas an opioid habit disaster. (AP Picture/Toby Talbot, File)

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 firms helped gas an opioid habit disaster.

The settlement was revealed late Friday in paperwork filed in federal courtroom in San Francisco. The settlement should nonetheless be authorised by a decide.

Beneath 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.

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 techniques to beat docs’ reservations concerning the extremely addictive medication. Insurers stated that pressured them to pay for prescription opioids quite than safer, non-addictive and lower-cost medication, together with over-the-counter ache medicine. In addition they needed to pay for the opioid habit therapy that adopted.

READ: OxyContin Maker Purdue Pharma Tentative Opioid-Crisis Settlement

From 1999 to 2021, almost 280,000 individuals within the U.S. died from overdoses of prescription opioids, in response to 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 almost $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 college districts and native governments.

READ: Walmart, CVS, Walgreens to pay $13.8 billion to settle US opioid claims

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

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

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



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