In a legal battle intensifying in the United States Bankruptcy Court for the Southern District of New York, McKinsey & Co. is seeking to dismiss a lawsuit filed by a bankruptcy trustee. The suit accuses the consultancy of playing a pivotal role in the downfall of the pharmaceutical company Endo International Plc due to what is described as “reckless” marketing advice related to opioids.
A central claim in the lawsuit is that McKinsey “wrote the playbook for opioid sales,” allegedly advising Endo International Plc in such a manner as to contribute significantly to the opioid crisis. Endo is one of numerous pharmaceutical companies that have faced severe financial repercussions as a result of litigation related to their role in the opioid epidemic.
Arguing before the court, McKinsey’s attorney, Andrew K. Glenn of Glenn Agre Bergman & Fuentes LLP, emphasized that McKinsey and its affiliates did not have any controlling power over Endo. As such, according to Glenn, these allegations should be dismissed as McKinsey’s advisory role did not equate to liability for the company’s decisions. McKinsey fears that accepting the trustee’s claim could lead down a “dangerous path,” potentially expanding the scope of accountability for consultancies providing business advice. For further details on the case, more information can be found in the original article.
Legal professionals and observers are closely watching this case, as its implications could resonate across the consulting industry, potentially setting precedents on the extent to which business advice dispensed can render a consulting firm accountable for client actions, particularly in matters of significant public interest such as the opioid crisis.