September 26, 2023 — McKinsey & Company has reached an agreement to settle claims by political subdivisions and school districts in the multidistrict litigation concerning the firm’s past advisory work for opioid manufacturers.
As we have stated previously, we continue to believe that our past work was lawful and deny allegations to the contrary, and the settlement contains no admission of liability or wrongdoing. The firm entered into this agreement to avoid the time and expense of protracted litigation and, in the process, to support the efforts of these political subdivisions and school districts to help those affected by the opioid epidemic.
In 2019, McKinsey committed to no longer advise clients on any opioid-related business anywhere in the world. We also continue to support organizations working to combat the opioid crisis. More broadly, we have implemented a rigorous client selection policy and invested nearly $700 million since 2018 to strengthen our risk management teams, capabilities, and processes.
Under the terms of this agreement, which will require approval by the court:
- McKinsey will pay $230 million, which political subdivisions and school districts will use to address the impact of the opioid epidemic in their communities.
- McKinsey will be released by the class members from all legal claims arising from the firm’s past work for opioid manufacturers.
- The financial payment will be distributed to the political subdivisions and school districts in a manner overseen and approved by the court.
- Class members have the right to opt out of the settlement if they choose, and McKinsey also has the right to withdraw from the agreement before final approval.
The court is expected to review and decide whether to preliminarily approve the settlement in the coming months. Following this, class members will receive a formal, court-approved notice of the proposed settlement. The court will then hold a hearing to determine whether to approve the settlement.---
McKinsey has also reached an agreement to resolve all legal claims by Native American Tribes, as well as an agreement in principle to resolve all legal claims by third-party payors concerning the firm’s past advisory work for opioid manufacturers.