McKinsey & Company is facing a criminal investigation by the US Department of Justice (DOJ) for its advisory role in assisting opioid manufacturers in increasing their sales. The investigation, reported by The Wall Street Journal, is examining whether McKinsey or its employees engaged in obstruction of justice related to record-keeping practices.
This scrutiny comes after McKinsey paid nearly $1 billion to settle opioid-related lawsuits with all 50 states, Native American tribes, local governments, and other entities. The consultancy's past work with various drugmakers, including Purdue Pharma, has drawn significant attention amid the opioid crisis, which has led to the deaths of hundreds of thousands of Americans.
McKinsey has not commented on the investigation, and the DOJ has not responded to requests for comment. The investigation, which has been ongoing for years, has involved subpoenas issued to former McKinsey clients, including Endo Pharmaceuticals.
The investigation highlights ongoing concerns surrounding McKinsey's involvement in the opioid crisis, despite the firm's cessation of such work in 2019. McKinsey's strategies, including "Project Turbocharge," aimed at boosting opioid sales, have come under scrutiny in various lawsuits, revealing internal communications regarding the firm's awareness of legal risks and discussions about record-keeping practices.
The establishment of a grand jury in Virginia and collaboration between US attorney's offices indicate the seriousness of the investigation into McKinsey's conduct regarding its advisory role in the opioid industry.
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