Carr and AG Colleagues Reach $573M Settlement with McKinsey & Company for its Role in the Opioid Epidemic with Purdue Pharma
ATLANTA, GA – Attorney General Chris Carr has joined a coalition of attorneys general from 47 states, the District of Columbia and five U.S. territories in a $573 million settlement with one of the world’s largest consulting firms, McKinsey & Company, resolving investigations into the company’s role in working for opioid companies, helping those companies promote their drugs, and profiting from the opioid epidemic.
The settlement, after payment of costs, will be used to abate problems caused by opioids in the participating states. Georgia will receive $16,790,458.14 from the multistate settlement. This is the first multi-state opioid settlement to result in substantial payment to the states to address the epidemic.
In addition to providing funds to address the crisis, the agreement calls for McKinsey to prepare tens of thousands of its internal documents detailing its work for Purdue Pharma and other opioid companies for public disclosure online. In addition, McKinsey agreed to adopt a strict document retention plan, continue its investigation into allegations that two of its partners tried to destroy documents in response to investigations of Purdue Pharma, implement a strict ethics code that all partners must agree to each year, and stop advising companies on potentially dangerous Schedule II and III narcotics.
“This settlement holds McKinsey responsible for the critical role its deceptive marketing strategies played in the opioid crisis, and we intend for this settlement to be used for rehabilitation, recovery and assistance for those most impacted across our state,” says Attorney General Carr.
Today’s filings describe how McKinsey contributed to the opioid crisis by promoting marketing schemes and consulting services to opioid manufacturers, including OxyContin maker Purdue Pharma, for over a decade. The complaint, filed with the settlement, details how McKinsey advised Purdue on how to maximize profits from its opioid products, including targeting high-volume opioid prescribers, using specific messaging to get physicians to prescribe more OxyContin to more patients, and circumventing pharmacy restrictions in order to deliver high-dose prescriptions.
When states began to sue Purdue’s directors for their implementation of McKinsey’s marketing schemes, McKinsey partners began emailing about deleting documents and emails related to their work for Purdue.
The opioid epidemic has led to considerable harm to individuals and communities in Georgia over the last 20 years. During this time, over 9,500 Georgians have died from an opioid overdose. On an economic level, these deaths—and the impacts on Georgians who have struggled with opioid addiction—have created considerable costs to Georgia in the form of health care, child welfare, criminal justice, and many other programs needed to lessen the epidemic. It has also resulted in lost economic opportunity and productivity. On the social level, opioid addiction, abuse, and overdose deaths have torn families apart, damaged relationships, and eroded the social fabric of communities.
Today’s filing is the latest action Attorney General Carr and his office have taken to combat the opioid epidemic and to hold accountable those who are responsible for creating and fueling the crisis.
The states’ investigation was led by an executive committee made up of the attorneys general of California, Colorado, Connecticut, Massachusetts, New York, North Carolina, Oklahoma, Oregon, Tennessee, and Vermont. In addition to Georgia, the executive committee is joined by the attorneys general of Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Wisconsin, Wyoming, the District of Columbia, and the territories of American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.