McKinsey's $32M Opioid Deal With NY AG Approved

Introduction

Last Friday, Suffolk County Supreme Court Judge Jerry Garguilo approved a $32 million deal between McKinsey & Co. and the New York attorney general over the company's alleged role in fueling the opioid crisis.

The approval faced challenges from counties and municipalities who argued that the deal would potentially block them from pursuing their claims against the American worldwide management consulting firm.

The deal is a part of the $573 million settlement which was announced last month by the company to resolve nationwide lawsuits, which allege that it turbocharged opioid sales for Purdue Pharma and earned profits from the crisis caused.

As per the settlement deal, the company is also required to produce all the internal documents that report its work with Purdue. The company denied any wrongdoing and has agreed to not take part in any opioid-related work moving forward.

The local governments objected to the parties' bid to approve the deal by filing an opposition brief on March 8, arguing that the settlement was made against the public interest. They noted that the parties are clearly not in agreement with respect to whether the settlement would release the company from future claims.

However, in the March 12 order, the judge agreed that the issue of whether a provision in the deal would release the firm from certain legal claims brought by other political subdivisions "is not ripe for determination."

This week in news was another opioid deal in which the Sackler family, the owner of Purdue Pharma LP, agreed to contribute $4.275 billion to resolve the nearly 3,000 lawsuits filed against the company.

The New York attorney general's lawsuit over the opioid crisis against other manufacturers, distributors, and pharmacies also got delayed due to the concerns related to COVID-19, and Judge Garguilo indicated that the trial will likely begin on June 8.

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