McKinsey & Co's $650 Million Faceplant: How the World's Top Consultancy Got Caught Dealing Drugs...

Let’s be honest, McKinsey & Company is like that kid who always aced the group project but secretly made everyone else do the work. Except this time, they’re not just “solving problems for clients”--- they’re being forced to payout $650 million to settle a federal criminal probe for helping Purdue Pharma sell its crown jewel of despair—OxyContin. Simply put, the consulting giant best known for PowerPoints and buzzwords is now infamous for “turbocharging” opioid sales during one of the worst public health crises in U.S. history.

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For 15 years, McKinsey allegedly pocketed over $93 million from Purdue Pharma while helping them figure out how to squeeze every last penny out of their highly addictive product. And we’re not talking about a harmless corporate strategy here. According to court filings, McKinsey knew Purdue’s executives had already pleaded guilty to misbranding charges in 2007 but still decided, “Yeah, let’s double down on this.”

(Source: AP) 

For instance, one of McKinsey’s brilliant “strategies” included identifying which doctors would prescribe the most opioids if Purdue’s sales reps gave them a nudge. They even flagged small clinics that were prescribing more OxyContin than entire hospital systems and suggested targeting them. Classy. Meaning, when you look at the brass tacks of it all, McKinesey wasn’t just business consulting; they were literally matchmaking for addiction.

Naturally, the Fed’s haven’t pulled any punches with this one. Prosecutors accused McKinsey of “knowingly and intentionally” conspiring to misbrand prescription drugs. Translation: they weren’t just consultants; they were accomplices. And as part of the settlement, McKinsey isn’t just coughing up $650 million—they’ve also agreed to stop working on anything remotely connected to the sale, marketing, or distribution of controlled substances. 

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The worst part? This isn’t even Mckinsey’s first payout related to the opioid crisis. The firm has already shelled out nearly $1 billion to settle lawsuits with states, local governments, and health insurers. But this latest deal marks the first time a consulting firm has been held criminally accountable for actively helping a client break the law. 

McKinsey, of course, issued the usual corporate mea culpa: “We’re deeply sorry for our past client service to Purdue Pharma and the actions of a former partner.” Oh, and they also admitted they should’ve “appreciated the harm opioids were causing.” However, the fact that former McKinsey partner, Martin Elling, is pleading guilty to obstruction of justice for… wait for it… deleting documents faster than I used to delete my browser history suggests: They’re only “sorry” they got caught. 

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Especially since federal filings also revealed that McKinsey’s consultants went so far as to ride shotgun with Purdue sales reps to gather intel, once noting that a pharmacist was armed and “shaking” due to the rampant abuse they were witnessing. But instead of seeing this as a red flag, McKinsey kept brainstorming ways to sell even more pills.

So with that, here we are: McKinsey, the supposed gold standard of consulting, now the poster child for “just because it’s profitable doesn’t mean it’s ethical.” Somewhere, the ghost of Gordon Gekko is slow-clapping. Now of course, is $650 million a zesty bill? 100%, but it’s just a drop in the bucket for a firm that reportedly rakes in billions annually. Still, the reputational damage? Priceless. McKinsey will now forever be tied to the opioid epidemic, a crisis fueled by greed, ignorance, and the kind of corporate strategy that has its fair share of Netflix docusesies. 

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Meaning, in the famous words of Tony Soprano: “Every decision you make affects every facet of every other [expletive] thing.” —McKinsey’s decision to help Purdue “turbocharge” OxyContin sales is officially one that’s going to haunt them for a long time. In the meantime, as inflation continues to give every American a run for their money these days—let’s all just be glad it ain’t costing us the tune of $650 million, amirite? 

In the end, enjoy your Sunday friends, and as always, stay safe and stay frosty! Until next time… 

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