The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Business

McKinsey & Co. to pay $650M to settle opioid consulting probe, ex-partner to plead guilty

by December 16, 2024
December 16, 2024
McKinsey & Co. to pay $650M to settle opioid consulting probe, ex-partner to plead guilty

McKinsey & Company agreed to pay $650 million in a deferred prosecution agreement that will resolve a federal criminal probe into the company’s consulting work advising Purdue Pharma on how to increase sales of its opioid painkiller OxyContin, a court filing said Friday.

A former top partner at McKinsey, Martin Elling, also agreed to plead guilty to obstruction of justice next month in the probe by the U.S. Department of Justice, according to a filing in U.S. District Court in Abingdon, Virginia.

The criminal charging document that McKinsey agreed to have filed by prosecutors alleges the consulting giant “knowingly and intentionally” conspired with Purdue Pharma “and others to aid and abet the misbranding of prescription drugs.”

The document also said McKinsey is accused, through the acts of its then-partner Elling, of “knowingly destroying and concealing records and documents with the intent” to impede the investigation by the Department of Justice.

McKinsey, which previously agreed to pay almost $1 billion to settle lawsuits by states, local governments and others related to its opioid consulting, accepted responsibility for the conduct alleged by federal prosecutors, according to the deferred prosecution agreement.

As part of the deal, McKinsey will not work on any marketing, sale, promotion or distribution of controlled substances.

In a statement to CNBC, McKinsey said, “We are deeply sorry for our past client service to Purdue Pharma and the actions of a former partner who deleted documents related to his work for that client.”

“We should have appreciated the harm opioids were causing in our society and we should not have undertaken sales and marketing work for Purdue Pharma,” the firm said. “This terrible public health crisis and our past work for opioid manufacturers will always be a source of profound regret for our firm has requested comment from McKinsey.”

The company said that in addition to its deferred prosecution agreement with the DOJ, it “has agreed to settle a related civil False Claims Act investigation and to enter into a Corporate Integrity Agreement with the Office of Inspector General at the Department of Health and Human Services.”

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Silver Crown Royalties Executes Definitive Agreement to Acquire a Third Producing Royalty
next post
‘They said we were American spies’: Priests describe Russia’s crackdown on Evangelicals in occupied Ukraine

You may also like

U.S. charges former Wamco executive Kenneth Leech with...

Tesla asks shareholders to vote again on Musk’s...

TikTok and fast-food rivalry fuel Chili’s sales as...

Argentine President Milei faces impeachment calls for promoting...

Price hikes loom for consumers with the loss...

The U.S. economy added 187,000 jobs in July,...

Rentals across the U.S. may be easing and...

See how the prices have changed for popular...

Former Bed Bath & Beyond investor Ryan Cohen...

We found many loose bolts on our Max...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Massachusetts suspect charged with attempting to assassinate a Cabinet nominee

    • Pakistan says it has struck military targets inside India in series of new attacks

    • Rodrigo Duterte is being held at The Hague. Next week he might be elected mayor of his hometown

    • Buffett Hands Over Reins, What’s Next for Berkshire’s Capital Strategy?

    • Triumph Gold Updates Shareholders on Operations, Engages Market Maker, and Grants Options

    Categories

    • Business (1,633)
    • Investing (4,797)
    • Politics (7,546)
    • World (6,132)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top