State to receive nearly $25M in settlement

Consulting firm McKinsey & Company to pay up for role in opioid epidemic

McKinsey & Company has settled its case for the firm’s past opioid manufacturing advisement work.

Ohio is receiving nearly $25 million from the consulting firm McKinsey & Company in part of a settlement over the firm’s past opioid manufacturing advisement work.

In total, the company is paying $573 million after settlements were reached with 49 state attorneys general, five territories and the District of Columbia.

According to the Associated Press, McKinsey’s role in the opioid epidemic came into focus late last year after legal documents were made public as part of OxyContin manufacturer Purdue Pharma’s efforts to settle claims against it in bankruptcy court.

Documents showed that the firm worked with Purdue to increase sales, even as the extent of the opioid epidemic became clear. Some documents showed McKinsey was trying to “supercharge” declining OxyContin sales in 2013, according to the Associated Press. McKinsey worked with Purdue for 15 years and efforts included encouraging Purdue sales representatives to focus on doctors who already prescribed high volumes of OxyContin and to try to move patients to more potent doses of the drug.

“We chose to resolve this matter in order to provide fast, meaningful support to communities across the United States,” Kevin Sneader, global managing partner of McKinsey said in a statement. We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic unfolding in our communities. With this agreement, we hope to be part of the solution to the opioid crisis in the U.S.”

A majority of Ohio’s $24.7 million it is receiving in the settlement will go into the OneOhio Recovery Foundation, Attorney General Dave Yost said.

OneOhio is a partnership between the Ohio Governor’s Office, the Attorney General’s Office and local communities.

The Attorney General’s Office stated OneOhio “provides a transparent mechanism for the distribution and use of certain opioid settlement funds.”

A key element of the plan is the establishment of a not-for-profit foundation that will “focus resources toward regional programming aimed at combating the opioid crisis.”

Yost said Ohio is receiving $20 million this year and $4.7 million spread over the next four years.

“Twenty-four and a half million dollars won’t cure the opioid crisis, but it can be a start toward bringing treatment and services to people in need,” Yost said in a statement.

DeWine said in a statement that “although McKinsey was not part of the lawsuits that brought Ohio together under the OneOhio plan, I am pleased that Attorney General Dave Yost has decided to leverage this recent settlement to start the work of OneOhio and begin the development of a statewide foundation.”

“We remain committed to holding these drug manufacturers and distributors accountable,” DeWine said. “When the settlements for those cases happen, Ohio will be ready to implement the necessary funding, programs, and services for Ohio’s communities.”

“Twenty-four and a half million dollars won’t cure the opioid crisis, but it can be a start toward bringing treatment and services to people in need.” — Ohio Attorney General Dave Yost