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McKinsey & Company agrees to $650 million settlement with feds over opioids work
McKinsey & Company consulting firm has agreed to pay $650 million to settle a federal investigation into its work for opioids manufacturer Purdue Pharma, according to court papers filed in Virginia on Friday.
McKinsey has also entered into a deferred prosecution agreement to resolve criminal charges, including that it conspired with Purdue Pharma to aid in the misbranding of prescription drugs.
A former McKinsey senior partner has also agreed to plead guilty to obstruction of justice, according to the court papers.
McKinsey representatives didn’t immediately respond to phone and email messages on Friday.
Since 2021, McKinsey has agreed to pay state and local governments about $765 million in settlements for its role in advising businesses on how to sell more of the powerful prescription painkillers amid a national opioid crisis.
The consulting firm also agreed last year to pay health care funds and insurance companies $78 million.
The U.S. has been in an addiction and overdose crisis for decades, linked to more than 80,000 deaths in recent years. For the past decade, most of the deaths have been attributed to illicit fentanyl, which is laced into many illegal drugs. Earlier in the epidemic, prescription pills were the primary cause of death.
Some advocates say the crisis was touched off when Purdue Pharma’s OxyContin hit the market in 1996.
Three Purdue executives pleaded guilty to misbranding charges in 2007 and the company agreed to pay a fine. The company pleaded guilty to criminal charges in 2020 and agreed to $8.3 billion in penalties and forfeitures — most of which will be waived as long as it executes a settlement through bankruptcy court that is still in the works.
McKinsey documents made public over the years describe Purdue using the consulting firm to help “turbocharge” opioid sales in 2013, as blowback against the opioid crisis meant that the company’s drugs were being prescribed less.
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Mulvihill reported from Philadelphia.
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Trump ordered to sit for deposition in defamation suit against ABC News
Washington — President-elect Donald Trump has been ordered by a federal judge to sit for a deposition next week in his defamation lawsuit against ABC News and anchor George Stephanopoulos.
Magistrate Judge Lisette Reid issued the order on Friday saying Trump will have to give an in-person deposition next week as part of the lawsuit he filed against ABC News in March that alleged Stephanopoulos made defamatory comments on air.
In a March 10 interview with Republican Rep. Nancy Mace of South Carolina, Stephanopoulos said that Trump had been “found liable for rape.”
Last year, a jury in New York found Trump liable for sexual abuse of the writer E. Jean Carroll and defaming her with statements he made denying Carroll’s allegations. The judge who heard the case said the sexual abuse that Trump was found liable for — forcibly penetrating Carroll with his fingers — is commonly understood as “rape,” even though the statute defines it as a separate offense.
In his complaint, Trump accused Stephanopoulos of acting “with actual malice or with a reckless disregard for the truth,” and claimed Stephanopoulos “knows that these statements are patently and demonstrably false.”
Judge Reid said Trump’s deposition will be in person next week in the Southern District of Florida, which is where his Mar-a-Lago property in Palm Beach is located. The questioning will be limited to four hours, Reid said.
Reid also ordered Stephanopoulos to sit for a deposition next week, either in person or remotely. His deposition is also limited to four hours.
Shawna Mizelle and
contributed to this report.
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“Blue Bloods” star Abigail Hawk reflects on the series ahead of finale
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Trump reportedly considering military action against Iran
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