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Consulting firm McKinsey & Company has reached a substantial settlement agreement of $230 million to resolve lawsuits filed by numerous U.S. local governments and school districts, accusing the firm of contributing to the opioid addiction crisis through its consulting work with OxyContin maker Purdue Pharma and other pharmaceutical companies.
McKinsey had been accused of aiding drug manufacturers in devising deceptive marketing strategies and increasing the sales of opioid painkillers, thereby exacerbating the opioid crisis, Reuters noted.
The settlements, still awaiting a judge's approval, were disclosed in federal court documents filed in San Francisco.
This payment is in addition to the $641.5 million that McKinsey had previously paid to address claims from state attorneys-general.
In these settlements, McKinsey has agreed to pay $207 million to address claims brought by counties and municipalities and an additional $23 million to resolve claims made by public school districts.
In a statement, McKinsey emphasized that it had ceased offering advice on any opioid-related business activities in 2019.
In a related development, the U.S. Supreme Court recently agreed to hear a challenge from President Joe Biden's administration regarding Purdue Pharma's bankruptcy settlement, which resolves various claims against the drug manufacturer.
McKinsey's executives are facing a lawsuit filed by critic Jay Alix, alleging McKinsey intentionally concealed conflicts of interest from bankruptcy courts to gain an advantage in offering advisory services for major corporate restructurings.
