Consulting agency McKinsey and Co. has agreed to pay $78 million to settle claims from insurers and well being care funds that its work with drug corporations helped gasoline an opioid habit disaster.
The settlement was revealed late Friday in paperwork filed in federal courtroom in San Francisco. The settlement should nonetheless be permitted by a decide.
Under the settlement, McKinsey would set up a fund to reimburse insurers, personal profit plans and others for some or all of their prescription opioid prices.
The insurers argued that McKinsey labored with Purdue Pharma – the maker of OxyContin – to create and make use of aggressive advertising and gross sales ways to beat docs’ reservations concerning the extremely addictive medicine. Insurers stated that compelled them to pay for prescription opioids fairly than safer, non-addictive and lower-cost medicine, together with over-the-counter ache remedy. They additionally needed to pay for the opioid habit therapy that adopted.
From 1999 to 2021, practically 280,000 folks within the U.S. died from overdoses of prescription opioids, in line with the U.S. Centers for Disease Control. Insurers argued that McKinsey labored with Purdue Pharma even after the extent of the opioid disaster was obvious.
The settlement is the newest in a years-long effort to carry McKinsey accountable for its function within the opioid epidemic. In February 2021, the corporate agreed to pay practically $600 million to U.S. states, the District of Columbia and 5 U.S. territories. In September, the corporate introduced a separate, $230 million settlement settlement with college districts and native governments.
Asked for remark Saturday, McKinsey referred to a press release it launched in September.
“As we have stated previously, we continue to believe that our past work was lawful and deny allegations to the contrary,” the corporate stated, including that it reached a settlement to keep away from protracted litigation.
McKinsey stated it stopped advising shoppers on any opioid-related business in 2019.