(Reuters) – Consulting giant McKinsey & Co. is close to reaching a deal with U.S. prosecutors to pay at least $500 million to settle federal probes into its past work helping opioid makers boost sales, Bloomberg News reported on Wednesday.
A settlement, which could be announced in the coming weeks, would resolve criminal and civil investigations by the Justice Department, the report said citing people familiar with the matter.
Federal prosecutors have been investigating McKinsey’s role in the opioid epidemic, focusing on its work advising OxyContin maker Purdue Pharma and other drugmakers, Reuters reported in April.
The probe examines whether McKinsey engaged in a criminal conspiracy when advising pharmaceutical manufacturers on marketing strategies to boost sales of prescription painkillers that led to widespread addiction and fatal overdoses.
McKinsey has already reached separate agreements totaling nearly $1 billion to settle widespread opioid lawsuits and other related legal actions. These settlements involve all 50 states, Washington, D.C., U.S. territories, various local governments, school districts, Native American tribes, and health insurers.
In 2019, McKinsey announced it would no longer advise clients on opioid-related businesses. The company has maintained that none of the settlements contain admissions of liability or wrongdoing.
The Justice Department and McKinsey did not immediately respond to Reuters’ requests for comment.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Tasim Zahid)
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