California Secures $573 Million Settlement with McKinsey & Company Over Opioid Crisis

A coalition of attorneys general from 47 states, the District of Columbia, and five U.S. territories has reached a $573 million settlement with McKinsey & Company, one of the world's largest consulting firms, over its role in advising opioid companies and profiting from the opioid epidemic. California will receive $59,613,603.99 from the settlement, which will be used to abate the damage caused by opioids to families and communities. The settlement marks the first multistate opioid settlement to result in substantial payment to the states to address the epidemic.

Key Takeaways:

• The settlement resolves California's investigation into McKinsey's role in advising opioid companies, helping them promote their drugs, and profiting from the opioid epidemic.
• The agreement calls on McKinsey to prepare tens of thousands of internal documents detailing its work for Purdue Pharma and other opioid companies for public disclosure online.
• McKinsey agrees to adopt a strict document retention plan, investigate allegations that two of its partners tried to destroy documents, and stop advising companies on potentially dangerous Schedule II and III narcotics.
• The opioid epidemic has led to 3,244 deaths related to an opioid overdose in California in 2019 and resulted in considerable costs to the state in the form of healthcare, child welfare, criminal justice, and other programmatic costs.
• The uncertainty and stress caused by the COVID-19 pandemic has continued to fuel the increase in opioid overdose deaths, with national suspected overdoses rising 18 percent in March, 29 percent in April, and 42 percent in May compared to the same months in 2019.
• The settlement is the latest action taken by Attorney General Becerra to combat the opioid epidemic and hold accountable those responsible for creating and fueling the crisis.

Statistics:

• $573 million: Total settlement amount
• $59,613,603.99: Amount received by California
• 3,244: Number of deaths related to an opioid overdose in California in 2019
• 18%: Increase in national suspected overdoses in March 2020 compared to the same month in 2019
• 29%: Increase in national suspected overdoses in April 2020 compared to the same month in 2019
• 42%: Increase in national suspected overdoses in May 2020 compared to the same month in 2019

Sources:

• California Department of Public Health: Reported 3,244 deaths related to an opioid overdose in 2019.
• Overdose Detection Mapping Application Program: Reports on national suspected overdoses.
• Contify.com: Reports on the settlement and its terms.