McKinsey and Company's involvement in boosting OxyContin sales for Purdue Pharma

SOURCE www.npr.org
McKinsey and Company agreed to pay $650 million to settle federal probes into its role in boosting OxyContin sales for Purdue Pharma. The settlement includes a deferred prosecution agreement and a guilty plea from a former senior partner for obstruction of justice. The company also apologized for its actions and agreed to refrain from work involving controlled substances in the future.

Key Points

  • McKinsey agreed to pay $650 million to settle federal probes
  • Former senior partner pleaded guilty to felony obstruction of justice
  • McKinsey apologized for its past client service to Purdue Pharma
  • The settlement includes refraining from work involving controlled substances in the future

Pros

  • Settlement helps in holding McKinsey accountable for its actions
  • Agreement includes a guilty plea for obstruction of justice from a former senior partner

Cons

  • Critics argue that high-level corporate players involved in the opioid crisis rarely face criminal charges or prison time
  • Pattern of hefty fines without individual accountability continues in the industry