Global management consultancy McKinsey & Company has reached a $ 573 million settlement on its role in advising companies on how to “charge” opioid sales in an overdose crisis, a person with knowledge of the deal said on Wednesday The Associated Press with.
The person was not empowered to speak publicly about the deal prior to its scheduled announcement and filing in courts in 47 states, the District of Columbia, and five U.S. territories on Thursday.
McKinsey didn’t immediately respond to a call or email from the AP Wednesday night.
Without naming McKinsey, attorneys general in at least North Carolina and West Virginia have plans to make announcements regarding the opioid crisis Thursday morning. And Washington attorney general Bob Ferguson said in a statement that the state will file a consenting decree with McKinsey on Thursday “that will lead to corporate reforms and more than $ 13 million for opioid treatment, prevention and recovery efforts to Washington state . ” Ferguson said that was separate from the multistate deal.
Most of the money in the national settlement, first reported by the New York Times, would be sent to the states in less than a year and used to help contain the national overdose crisis. Prescription and illegal opioids such as heroin and illegal fentanyl combined have been linked to the deaths of more than 470,000 Americans since 2000. And the epidemic has worsened amid the coronavirus pandemic.
State and local governments have filed lawsuits in recent years against companies that manufacture and sell prescription opioids for their role in the crisis. However, finding a consulting firm is a new fold in litigation.
McKinsey provided documents used in legal proceedings against OxyContin maker Purdue Pharma, including some documents describing its efforts to help the company “increase” opioid sales in 2013 in response to the overdose crisis Heavily loaded prescription.
Documents released in Purdue last year include emails to McKinsey. One in 2008, a year after the company first pleaded guilty to opioid-related crimes, said board members, including a Sackler family member, have “blessed” him to do whatever he thinks necessary stops to save the business.
Purdue is in bankruptcy court to try to resolve lawsuits against it. The company has proposed a deal that could be worth $ 10 billion over time. The company also pleaded guilty to a settlement with the federal government last year. Both Purdue and members of the Sackler family, who own the company, agreed to pay $ 225 million to the US government under the contract.
A group of the largest drug distributors as well as drug manufacturers Johnson & Johnson have also worked towards a national agreement.