New York City and 21 New York Counties Sue Consulting Firm McKinsey for Fueling Opioid Epidemic
June 1, 2021
The New York City Law Department announced today a lawsuit against McKinsey & Company – one of the world’s largest consulting firms - to hold the firm liable for its role in contributing to the opioid epidemic. According to the complaint, filed by New York City and 21 counties in New York State, McKinsey helped Purdue Pharma develop marketing schemes to “Turbocharge” sales for the addictive painkiller OxyContin while the opioid epidemic ravaged communities throughout the state. This misconduct occurred after Purdue Pharma pled guilty to crimes related to opioid distribution in an attempt to temporarily inflate Purdue’s price for a sale by the Sackler family, which controls the company. Marketing schemes included targeting high-volume opioid prescribers, using specific messaging to get physicians to prescribe more OxyContin to more patients, and circumventing pharmacy restrictions in order to deliver high-dose prescriptions. McKinsey aided and abetted Purdue, and the Sacklers sold millions of doses of Purdue’s opioids in New York in violation of New York law. When states began to sue Purdue for its implementation of McKinsey’s marketing schemes, McKinsey partners began emailing about deleting documents and emails related to their work for Purdue.
McKinsey’s misconduct contributed to a flood of prescription painkillers into communities. This caused a substantial burden on the City and counties through increased substance abuse treatment services, ambulatory services, emergency department services, inpatient hospital services, medical examiner costs, criminal justice costs, and law enforcement costs. In recent weeks, McKinsey has settled opioid-related claims with 49 states, the District of Columbia, and five U.S. territories for nearly $500 million. New York State is expected to receive $32 million. This lawsuit seeks to recover damages directly from McKinsey for current and future costs the plaintiffs will incur to combat this epidemic.
“Too many people have died and too many families have suffered from the opioid crisis that McKinsey helped fuel,” said First Assistant Corporation Counsel Georgia Pestana. “Despite knowledge of Purdue’s guilty plea in connection with opioid sales, McKinsey continued to help Purdue and the Sacklers develop deceptive strategies to push more deadly opioids into our communities. McKinsey targeted doctors they knew would overprescribe opioids and devised other immoral marketing schemes that helped the Sacklers line their pockets to the tune of billions of dollars before a bankruptcy. McKinsey continued to aid and abet Purdue to put profit over people, and our lawsuit seeks to hold McKinsey directly accountable to New York City and counties that are on the front lines confronting the opioid epidemic.”
More Americans have died from opioid overdoses than from participation in the Vietnam War. The health effects have also been dramatic in the City of New York. In 2016, there were 1,374 drug overdose deaths in New York City, 437 more than the previous year. Eighty-two percent (82%) of these deaths involved an opioid (either prescription or street drugs like heroin and illegally-manufactured fentanyl), and the number of drug overdose deaths has increased within the City in each of the last six years. Rates of drug overdose deaths in New York City more than doubled between 2010 and 2016, increasing from 8.2 per 100,000 residents in 2010 to 19.9 per 100,000 residents in 2016. Overdose rates rose among all demographic groups and among residents of nearly every New York City neighborhood. The New York City Department of Health and Mental Hygiene reports that drug overdose deaths impact every neighborhood and demographic in New York City.
New York City filed a lawsuit against opioid manufacturers and distributors in January 2018, alleging that the opioid crisis was caused by manufacturers’ deceptive marketing and distributors’ flooding of prescription painkillers into New York City. The case has been consolidated with dozens of others filed by communities across the state. New York City’s case is stayed pending the resolution of litigation brought by New York State, Suffolk and Nassau counties which are moving toward trial this summer before Judge Garguilo.
Joining New York City in the lawsuit against McKinsey are the counties of Suffolk; Broome; Columbia; Dutchess; Erie; Fulton; Greene; Herkimer; Lewis; Monroe; Montgomery; Ontario; Orange; Oswego; Schenectady; Seneca; St. Lawrence; Sullivan; Ulster; Washington; Wyoming.
This matter was handled by Simmons Hanly Conroy, LLC.
Contact: pressoffice@law.nyc.gov
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