A federal court in Northern California is hearing a case filed by Rhode Island cities and towns against consulting firm McKinsey & Company for its alleged role in fueling the opioid crisis through deceptive marketing tactics.
Cities in Rhode Island joined their counterparts in Pennsylvania, Utah, Wisconsin, and elsewhere in accusing McKinsey of participating in a racketeering conspiracy by advising Purdue Pharma on how to minimize the dangers of Oxycontin while simultaneously selling the prescription Painkiller at the highest possible price.
Communities accuse McKinsey of causing a major public health problem that has resulted in considerable economic harm, such as increased public health-related expenditures, opioid-related crimes, crises, and public safety difficulties.
Cities and communities have incurred and will continue to incur significant costs in responding to the crisis, with expenditures in the tens of millions of dollars by even the most conservative estimates, according to the attorney representing the cities and communities.
The case seeks specific monetary damages to address the crisis' societal consequences, such as those caused by addiction, violence, and crime, as well as child maltreatment, family dysfunction, kids born addicted, unemployment, and overall social misery.
The matter was referred this week to the United States District Court for the Northern District of California, which is in charge of the multi-district action against McKinsey. McKinsey did not answer in court, but has disputed similar charges and asked for the cases to be dismissed. A spokesman for the company did not immediately reply to a request for comment.
McKinsey agreed to pay $573 million to 47 states, the District of Columbia, and five U.S. territories in 2021. At the time, the attorney general stated that Rhode Island will receive $2.59 million for treatment, rescue, rehabilitation, and prevention initiatives. This was the first multi-state opioid settlement, resulting in large funds to states to combat the epidemic.
The agreement comes as the state witnessed a record 435 unintentional opioid overdose fatalities last year, prompting officials to scurry for solutions to the epidemic.
McKinsey is accused of knowing about the hazards of opioids and Purdue's previous misbehaviour following the drug company's 2007 guilty plea to mislabel the medicine. The consultant's job was to devise a plan that would keep Purdue inside the parameters of the 5-year corporate integrity agreement it signed with the federal government in 2007 while expanding Oxycontin sales.
