Michigan Attorney General Secures $19.5 Million in Multistate Opioid Settlement with McKinsey and Co.

Strategic Insights -

Michigan Attorney General Dana Nessel has joined 46 other attorneys general in a $573 million settlement with McKinsey and Co., one of the world's largest consulting firms. The settlement resolves investigations into McKinsey's role in working for opioid companies, helping them promote their drugs, and profiting from the opioid epidemic. Michigan will receive more than $19.5 million from the settlement, which will be used to address problems caused by opioids in the state. This is the first multistate opioid settlement to result in substantial payment to the states to address the crisis.

Key Takeaways:

  • The $573 million settlement is the result of investigations into McKinsey's role in working for opioid companies, including Purdue Pharma, and profiting from the opioid epidemic.
  • McKinsey agreed to prepare tens of thousands of its internal documents detailing its work for Purdue Pharma and other opioid companies for public disclosure online.
  • The company also adopted a strict document retention plan, implemented a strict ethics code that all partners must agree to each year, and stopped advising companies on potentially dangerous Schedule II and III narcotics.
  • Michigan Attorney General Dana Nessel said the settlement "illustrates that attorneys general across this nation are committed to holding companies accountable for their role in the opioid epidemic."
  • Governor Gretchen Whitmer supported the effort, saying "I appreciate the ongoing and important work of the Department of Attorney General to ensure accountability for the opioid crisis that has harmed so many families here in Michigan."
  • The opioid epidemic has led to considerable harm to individuals and communities in Michigan over the last 20 years, resulting in thousands of deaths and significant economic and social costs.
  • Michigan has been at the forefront of efforts to combat the opioid epidemic, filing a lawsuit against major opioid distributors in December 2019 and participating in the investigation led by an executive committee consisting of attorneys general from California, Colorado, Connecticut, Massachusetts, New York, North Carolina, Oklahoma, Oregon, Tennessee, and Vermont.

Statistics:

  • The settlement totals $573 million, with Michigan set to receive more than $19.5 million.
  • Over the last 20 years, the opioid epidemic has led to thousands of deaths in Michigan and significant economic and social costs.
  • The epidemic has resulted in lost economic opportunity and productivity, as well as emotional and social damage to families and communities.
  • 46 attorneys general participated in the investigation, including Michigan Attorney General Dana Nessel and Attorney General Nessel.

Sources:

  • Office of the Michigan Attorney General
  • "Michigan Attorney General Dana Nessel announces multistate settlement with McKinsey and Co."
  • "The opioid crisis: What you need to know"
  • "Michigan becomes first state to sue major opioid distributors as drug dealers"
  • "States' investigation into McKinsey and Co. led by executive committee consisting of attorneys general from California, Colorado, Connecticut, Massachusetts, New York, North Carolina, Oklahoma, Oregon, Tennessee, and Vermont."