Consulting Firm Caught Promoting the Use of OxyContin
(Reuters File Photo)
I picked this up while reading the Bangkok Post a newspaper I would pick up while in Thailand working. It is a notable newspaper. The following was printed in a press release by the Office of Public Affairs as released by the US Department of Justice. Justice Department Announces Resolution of Criminal and Civil Investigations into McKinsey & Company’s Work with Purdue Pharma L.P.; Former McKinsey Senior Partner Charged with Obstruction of Justice.
McKinsey has agreed to pay a penalty of over $231 million, a forfeiture amount of over $93 million (reflecting all money it was paid by Purdue from 2004 to 2019) and a payment of $2 million to the Virginia Medicaid Fraud Control Unit to resolve the criminal allegations. McKinsey also has entered into a civil settlement agreement in which it will pay over $323 million to resolve its liability under the False Claims Act for allegedly providing advice to Purdue Pharma L.P. that caused the submission of false and fraudulent claims to federal healthcare programs for medically unnecessary prescriptions of OxyContin . . .
The department’s civil False Claims Act settlement resolves allegations that, from 2013 to 2014, McKinsey US, by advising Purdue to turbocharge OxyContin marketing to High Value Prescribers, some of whom were already prescribing very large quantities of OxyContin, as a means to increase OxyContin sales, and despite its awareness of the opioid crises, thereby knowingly caused false and fraudulent claims for OxyContin to be submitted to Medicare, Medicaid, TRICARE, the Federal Employees Health Benefit Program and the Veterans Health Administration.
A former employee of McKinsey faces a sentence of 20 years in prison, three years of supervised release and a fine up to $250,000 for the obstruction of justice charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
We will see if this highly paid actor ever faces a day in prison.
Bangkok Post – Consultants pay $650m to settle US opioid case
BOSTON – The multinational consulting firm McKinsey & Co has agreed to pay $650 million to resolve a US criminal investigation into its work advising the opioid manufacturer Purdue Pharma on how to boost sales.
McKinsey has entered into a five-year deferred prosecution agreement filed in federal court to resolve criminal charges brought as part of a rare corporate prosecution concerning the marketing of addictive painkillers that helped fuel the deadly US opioid epidemic, the Department of Justice said.
Prosecutors said that McKinsey provided Connecticut-based Purdue advice on measures it could take to “turbocharge” OxyContin sales. It was charged with conspiring to misbrand a drug and obstruction of justice.
A former senior partner at McKinsey, Martin Elling, has also agreed to plead guilty to obstruction of justice for destroying records related to McKinsey’s work for Purdue, according to court papers. He is scheduled to enter his plea on Jan 10.
McKinsey and a lawyer for Elling did not respond immediately to requests for comment.
McKinsey previously reached agreements totaling nearly copy billion to settle widespread lawsuits and other legal actions alleging the company helped fuel the opioid epidemic through its work advising OxyContin maker Purdue Pharma and other drugmakers.
The settlements involved all 50 states, various local governments, school districts, Native American tribes and health insurers.
In 2019, McKinsey announced it would no longer advise clients on opioid-related businesses. The company has maintained that none of its settlements contain admissions of liability or wrongdoing.
Purdue pleaded guilty in 2020 to criminal charges covering widespread misconduct regarding its handling of prescription painkillers, including conspiring to defraud US officials and pay illegal kickbacks to both doctors and an electronic healthcare records vendor.
Purdue is currently involved in court-ordered mediation over a multibillion-dollar settlement reached in bankruptcy proceedings that the US Supreme Court turned aside.
“Consultants pay $650m to settle US opioid case,” Bangkok Post
Office of Public Affairs | Justice Department Announces Resolution of Criminal and Civil Investigations into McKinsey & Company’s Work with Purdue Pharma L.P.; Former McKinsey Senior Partner Charged with Obstruction of Justice, United States Department of Justice
Anyone pick this up from a major US media source? If so, on what page?
Are you that dumb?
AP is reporting on it. Boston Globe had it as one of its top stories. The Bangkok Post is showing us how they perceive the US by reporting this event.
For years now I have written on the opioid epidemic due to a simple lie promoted by Purdue about how its product is non-addictive. All Purdue did was changed one sentence in a report and then promoted it as reality.
Take a few days off and leave Angry Bear. I do not want to see your words on Angry Bear.
I spent much of my time in Asia while working with US plants over there. It was important to know what they were thinking.