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McKinsey & Co under Criminal Investigation for Alleged Role in Fueling Opioid Epidemic

McKinsey & Co, a renowned consulting firm, is currently under criminal investigation in the United States for its alleged involvement in fueling the opioid epidemic. Sources familiar with the matter revealed that federal prosecutors are focusing on McKinsey’s work with OxyContin maker Purdue Pharma and other drug manufacturers.

The investigation is centered on suspicions that McKinsey may have participated in a criminal conspiracy by advising these companies on marketing strategies to increase sales of prescription painkillers, which ultimately contributed to widespread addiction and fatal overdoses. Additionally, the U.S. Justice Department is looking into potential healthcare fraud related to McKinsey’s consulting work for opioid-selling companies, which may have led to fraudulent claims being submitted to government healthcare programs like Medicare.

Furthermore, prosecutors are examining whether McKinsey obstructed justice, particularly in light of the consulting firm’s admission that it terminated two partners who were found to have engaged in discussions about deleting documents linked to their work on opioids. The investigation, initiated several years ago, involves officials from the Justice Department offices in Washington, Massachusetts, and Virginia.

While investigations do not imply guilt, the Justice Department’s inquiry could result in criminal charges, civil sanctions, or the closure of the probe without any action taken. This probe holds significant weight for McKinsey, as it could potentially lead to criminal charges against the company or its executives, as well as substantial financial penalties typically demanded by the Justice Department in white-collar investigations.

Notably, McKinsey had previously settled numerous opioid-related lawsuits by agreeing to pay nearly $1 billion to various entities, including all 50 states, Washington, D.C., U.S. territories, local governments, school districts, Native American tribes, and health insurers. Despite these settlements, the current criminal investigation by the Justice Department highlights the ongoing repercussions of McKinsey’s past involvement in advising drug manufacturers on opioids.

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