McKinsey has agreed to pay $573m (£419m) to resolve claims it faced across the US related to its role fuelling America’s opioid epidemic.
The consulting firm was under investigation for its work with Purdue Pharma, which aimed to boost sales of the addictive Oxycontin painkiller.
McKinsey maintained that its past work was “lawful” and denied wrongdoing.
But California Attorney General Xavier Becerra said the firm had been “part of a machine that… destroyed lives”.
Prosecutors said McKinsey had worked on strategies to “turbocharge” Oxycontin sales, advising Purdue to increase sales calls to doctors known to be high prescribers and to “subvert” restrictions on higher dosages that authorities wanted to impose.
When officials began to take legal action against Purdue, McKinsey partners discussed deleting documents related to their work with Purdue, which started in 2004 and lasted until 2019 – more than a decade after the company pleaded guilty to misrepresenting Oxycontin’s risks, they said.
“McKinsey’s cynical and calculated marketing tactics helped fuel the opioid crisis by helping Purdue Pharma target those doctors they knew would overprescribe opioids,” said New York Attorney General Letitia James. “They knew where the money was coming from and zeroed in on it.”
Prosecutors said McKinsey also made millions of dollars helping other firms involved in the industry develop similar marketing and sales plans.
The settlement resolves probes brought by 47 states, five territories and the District of Columbia. The money is to be used to fund drug treatment and other measures aimed at addressing the crisis.
McKinsey said it had also reached separate agreements with two other states, bringing the total payout to nearly $600m.