McKinsey To Settle Opioid Marketing Claims With NV For $45M

McKinsey To Settle Opioid Marketing Claims With NV For $45M

Introduction

On Monday, Nevada Attorney General (AG) announced that McKinsey & Co. Inc., the American worldwide management consulting firm, has reached a $45 million deal with the state to resolve claims alleging the company's role in fueling the nationwide opioid crisis.

The Nevada AG’s Office said that the settlement will resolve claims that the company violated the Nevada Deceptive Trade Practices Act when it was hired by opioid drugmakers as a marketing and consultancy firm to help increase opioid sales in Nevada. The funds will be used to address "harms and costs" caused by the opioid epidemic.

The AG, in a statement announcing the deal, said that several Nevadans died due to the opioid crisis, which is the reason why the state's bureau of consumer protection fought hard to achieve the settlement with the company.

The deal follows a $573 million multistate settlement announced last month by the company to resolve nationwide lawsuits, which allege that it turbocharged opioid sales for Purdue Pharma and earned profits from the crisis caused.

Washington and West Virginia have also entered separate settlements with the company for $13.5 million and $10 million, respectively.

In a statement, the company noted that it has now reached settlements with all 50 state attorneys general, along with five U.S. territories and the District of Columbia.

Recently, Suffolk County Supreme Court Judge Jerry Garguilo approved a $32 million deal between the company and the New York AG over similar claims and the deal is also a part of the multistate settlement.

The approval faced challenges from counties and municipalities who argued that the deal would potentially block them from pursuing their claims against the consulting firm. However, Judge Garguilo said that the issue of whether a provision in the deal would release the firm from certain legal claims brought by other political subdivisions "is not ripe for determination."