United States Attorney Joshua S. Levy | U.S. Department of Justice
McKinsey & Company Inc., a global management consulting firm, has agreed to pay $650 million to settle criminal and civil investigations related to its work with Purdue Pharma L.P. The resolution addresses McKinsey's advisory role in Purdue's sales and marketing strategies for the opioid drug OxyContin, including a 2013 engagement focused on increasing sales.
This marks the first instance of a management consulting firm being held criminally accountable for advice that led to a client's criminal actions. Additionally, former McKinsey senior partner Martin E. Elling has been charged with obstruction of justice for allegedly destroying documents pertinent to the investigation.
As part of the settlement, McKinsey will enter into a five-year deferred prosecution agreement and implement a compliance program aimed at identifying high-risk client engagements. The firm is also prohibited from engaging in any activities related to controlled substances during this period.
"This global resolution shows the department’s commitment to holding accountable those who played key roles in fueling the opioid crisis," said Principal Deputy Assistant Attorney General Brian M. Boynton.
U.S. Attorney Christopher R. Kavanaugh emphasized the unprecedented nature of this case: "For the first time in history, the Justice Department is holding a management consulting firm and one of its senior executives criminally responsible."
The financial penalties include over $231 million as a penalty, more than $93 million forfeiture reflecting payments received from Purdue between 2004 and 2019, and $2 million paid to Virginia's Medicaid Fraud Control Unit.
Inspector General Christi A. Grimm stated that "McKinsey’s management consulting work with Purdue Pharmaceuticals significantly contributed to a devastating public health crisis affecting American families and communities nationwide."
In addition to these measures, McKinsey must comply with an agreement involving risk assessment procedures designed by HHS-OIG.
Elling faces up to 20 years in prison if convicted on charges related to obstruction of justice after allegedly removing materials linked to McKinsey’s work with Purdue from his company-issued laptop.
