McKinsey is on the verge of settling U.S. opioid investigations, sources say

By Nate Raymond and Mike Spector

(Reuters) – Consulting firm McKinsey & Co is close to a deal with U.S. prosecutors to pay more than $500 million to settle long-running federal investigations into its past work helping opioid makers to boost sales that allegedly contributed to a deadly addiction epidemic, two people in the know. said the matter.

A settlement, which has not been finalized, would resolve the criminal and civil investigations by the U.S. Justice Department, the people said.

The timeline for the announcement of any deal is unclear, they said. The terms of the deal could change as negotiations continue, one of the sources said.

McKinsey and the Justice Department declined to comment. Bloomberg previously reported that McKinsey was on the verge of settling the probes.

Federal prosecutors have been investigating McKinsey’s role in the opioid epidemic, focusing on its work advising OxyContin maker Purdue Pharma and other drug makers, Reuters reported in April.

The investigation examines whether McKinsey engaged in a criminal conspiracy when it advised drugmakers on marketing strategies to boost sales of prescription painkillers that led to widespread addiction and fatal overdoses.

McKinsey has already reached separate settlements totaling nearly $1 billion to settle widespread opioid lawsuits and other related legal actions. These settlements involve all 50 states, Washington, DC, US territories, various local governments, school districts, Native American tribes and health insurers.

In 2019, McKinsey announced that it would no longer advise clients on opioid-related businesses. The company has maintained that none of the settlements contain admissions of liability or wrongdoing.

(Reporting by Nate Raymond in Boston, Mike Spector in New York and Jaiveer Singh Shekhawat in Bengaluru; Editing by Tasim Zahid and Bill Berkrot)