McKinsey to pay $78 million in US opioid agreement with well being plans – ET HealthWorld

Boston:

Consulting company McKinsey & Co has agreed to pay $78 million to get to the bottom of claims by way of U.S. well being insurers and get advantages plans that it fueled an endemic of opioid habit via its paintings for drug corporations together with OxyContin maker Purdue Pharma.

The agreement used to be disclosed in papers filed on Friday in federal courtroom in San Francisco. It marked the remaining in a sequence of settlements McKinsey has reached resolving proceedings over the U.S. opioid epidemic.

Plaintiffs accused McKinsey, probably the most main world consulting corporations, of contributing to the fatal drug disaster by way of serving to drug producers together with Purdue Pharma design misleading advertising and marketing plans and spice up gross sales of painkillers.

McKinsey up to now paid $641.5 million to get to the bottom of claims by way of state lawyers basic and any other $230 million to get to the bottom of claims by way of native governments. It has additionally settled circumstances by way of Local American tribes.

Friday’s magnificence motion agreement, which calls for a pass judgement on’s approval, resolves claims by way of so-called third-party payers like insurers that offer well being and welfare advantages.

Paul Geller, a legal professional for the plaintiffs, in a remark stated the drug disaster used to be brought about by way of an oversupply of unhealthy addictive medication, and the case aimed to “get better one of the cash spent at the over-prescribed drugs.”

McKinsey didn’t admit wrongdoing. In a remark, the company stated it endured to consider its previous paintings used to be lawful. It additionally famous it had dedicated in 2019 to not advise purchasers on any opioid-related trade.

Hundreds of proceedings were filed by way of states, native governments and Local American tribes accusing drug corporations of downplaying the hazards of opioid painkillers, and vendors and pharmacies of ignoring crimson flags that they had been being trafficked illegally.

The litigation has resulted in additional than $50 billion in settlements with drugmakers, vendors and pharmacy chains.

Just about 645,000 other people died in america from overdoses involving opioids, each prescription and illicit, from 1999 to 2021, in line with the U.S. Facilities for Illness Keep watch over and Prevention.

The U.S. Superb Courtroom previous this month heard a problem by way of President Joe Biden’s management to Purdue Pharma’s multi-billion-dollar chapter agreement resolving linked claims in opposition to the drugmaker.