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Violation Tracker Individual Record

Company: McKinsey & Co. Inc.
Current Parent Company: McKinsey
Penalty: $650,000,000
Year: 2024
Date: December 13, 2024
Offense Group: healthcare-related offenses
Primary Offense: Controlled Substances Act violation
Mega-Scandal: Opioid Crisis
Violation Description: McKinsey & Company agreed to pay $650 million to resolve a criminal and civil investigation into the firm's consulting work with opioid manufacturer Purdue Pharma L.P. The resolution pertained to McKinsey's advice to Purdue concerning the sales and marketing of Purdue's extended-release opioid drug, OxyContin, including a 2013 engagement in which McKinsey advised on steps to "turbocharge" sales of OxyContin. As part of the government's resolution with McKinsey, the company entered into a five-year deferred prosecution agreement (DPA)in connection with a criminal Information filed in U.S. District Court for the Western District of Virginia against McKinsey's U.S. subsidiary. The information charged McKinsey U.S. with one felony count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department; and one misdemeanor count of knowingly and intentionally conspiring with Purdue and others to aid and abet the misbranding of prescription drugs, held for sale after shipment in interstate commerce, without valid prescriptions. McKinsey 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, as well as allegedly failing to disclose to the U.S. Food and Drug Administration (FDA) conflicts of interest arising from McKinsey's concurrent work for Purdue and the FDA.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Division
Civil or Criminal Case: civil and criminal
Prosecution Agreement: deferred prosecution agreement
HQ Country of Current Parent: USA
HQ State of Current Parent: New York
Ownership Structure of Current Parent: privately held
Major Industry of Current Parent: business services
Specific Industry of Current Parent: management consulting
Source of Data: (click here)
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Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.