According to a court filing on Friday, McKinsey & Company agreed to pay $650 million in a deferred prosecution deal to end a federal criminal investigation into the company’s consulting work advising Purdue Pharma on how to boost sales of its narcotic medication OxyContin.
According to a petition in U.S. District Court in Abingdon, Virginia, Martin Elling, a former top partner at McKinsey, also consented to enter a guilty plea to obstruction of justice next month in the U.S. Department of Justice investigation.
The consulting firm allegedly knowingly and consciously colluded with Purdue Pharma and others to aid and abet the misbranding of prescription pharmaceuticals, according to the criminal charging document that McKinsey consented to have filed by prosecutors.
According to the paper, McKinsey is also charged with intentionally deleting and hiding data and documents in order to obstruct the Department of Justice’s inquiry, through the actions of its former partner Elling.
According to the deferred prosecution agreement, McKinsey, which had already agreed to pay almost $1 billion to resolve claims from states, local governments, and others regarding its opioid advising, took accountability for the actions claimed by federal prosecutors.
McKinsey has been asked to react by CNBC.
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