PUBGY - McKinsey Faces Criminal Probe By DOJ For Opioid Consulting: Report | Benzinga
The U.S. Department of Justice is conducting a criminal investigation into the consulting firm McKinsey & Company for its role in advising major opioid manufacturers on increasing sales. The investigation also focuses on potential obstruction of justice related to McKinsey’s consulting records for opioid producers.
What Happened: The investigation, which has been ongoing for several years, has led to the formation of a grand jury in Virginia. The U.S. attorney’s offices in the Western District of Virginia and the District of Massachusetts are jointly conducting the probe, reported The Wall Street Journal citing people familiar with the investigation.
The criminal investigation revolves around McKinsey’s advice to pharmaceutical clients, including Purdue, Endo International, and Mallinckrodt, which previously triggered a wave of civil litigation against the firm. McKinsey reached a $642 million settlement with all 50 states and other entities in 2021, without admitting wrongdoing.
The firm’s former clients, Purdue, Endo, and Mallinckrodt, filed for bankruptcy while facing mass lawsuits alleging they sold drugs through misleading marketing practices, exacerbating addiction. McKinsey helped Purdue develop an initiative to boost OxyContin sales, including advising the company ...