McKinsey Pays Settlement for Work with Purdue Pharma

Management consulting company McKinsey will pay almost $600 million to settle several lawsuits over its role in the opioid crisis, including offering marketing advice to Purdue Pharma. The largest settlement is for $573 million, which Massachusetts Attorney General Maura Healey describes in a video.

Healey’s presentation and delivery are interesting because she represents families and is speaking for 47 attorneys general in several U.S. states. Her anger is evident, but her audience is small: only 53 views one week after it’s posted, and at least three of those are me. What are the communication objectives? This will make a good class discussion.

McKinsey’s response is also interesting for students studying business communication and character. In an email to staff, Global Managing Partner Kevin Sneader describes “setting a higher standard.” Whereas the governors consider McKinsey’s actions unlawful, Sneader does not agree:

“Indeed, while our past work with opioid manufacturers was lawful and never intended to do harm, we have always held ourselves to a higher bar. We fell short of that bar. We did not adequately acknowledge the epidemic unfolding in our communities or the terrible impact of opioid misuse and addiction, and for that I am deeply sorry.”

The Massachusetts court filing explains the legal argument.

At some point in 2019, two McKinsey executives debated in emails “eliminating all our documents and emails.” These executives have been terminated. (See McKinsey communications.)