McKinsey partner destroyed records to hide role in crisis

A former senior partner at McKinsey admitted to covering up the consultancy giant's advice to Purdue Pharma on how to "turbocharge" OxyContin sales. Martin Elling pleaded guilty last week to destroying internal documents during an investigation by the U.S. Department of Justice (DOJ). He was charged with obstruction of justice and faces at most a year in prison. 

Last month, McKinsey & Co agreed to pay $650 million to resolve the criminal investigation into its role in orchestrating the opioid crisis. The DOJ found McKinsey colluded with Purdue Pharma to massively boost OxyContin sales, despite knowing they were contributing to the opioid crisis.

For years, McKinsey provided Purdue with strategic marketing advice, including specifically targeting opioid prescribers and, offering rebates to health insurers for OxyContin overdoses. 

“McKinsey schemed with Purdue Pharma to ‘turbocharge’ OxyContin sales during a raging opioid epidemic," said U.S. Attorney Joshua Levy in a DOJ press release. McKinsey helped Purdue market OxyContin to "high-value prescribers" that would prescribe opioids to patients when "unsafe, ineffective, and medically unnecessary," the DOJ said.

Part of the investigation focused on how McKinsey advised both Purdue Pharma and the FDA without disclosing the conflict of interest to the FDA. The investigation found that from 2014 to 2017 McKinsey knowingly misled the FDA so that McKinsey could work with both Purdue Pharma and the FDA, despite the conflict of interests.

McKinsey accepted two criminal counts as part of a five-year deferred prosecution settlement. The DOJ will drop all charges against the company after a five-year period if its conditions are met, including accepting wrongdoing and paying the penalties.

The investigation has raised concerns into McKinsey’s relationships with other governments and public bodies. Despite working directly for the corporate sector, McKinsey is regularly hired for public policy consulting.

In Canada, McKinsey played a significant and disturbing role in Ontario and Quebec’s COVID-19 public health responses. The firm was awarded lucrative contracts for several million dollars, including a controversial clause exempting McKinsey from disclosing any potential conflict of interests in Quebec.

Globally, McKinsey has been accused of operating as a "shadow government" that works on behalf of the corporate sector. In November, McKinsey agreed to pay more than $122 million to resolve a criminal investigation into bribing South African officials. 

In the U.S., McKinsey has paid almost $1 billion in settlements for its role in advising drug manufacturers and the opiate crisis. Purdue was forced to pay over $8 billion in 2020 as a result of Oxycontin-related lawsuits.