McKinsey & Co., the global consulting firm, has seen a significant portion of claims dismissed in litigation related to its advisory role for Endo International Plc’s opioid sales. A federal court in New York dismissed the majority of the claims brought by a trustee representing Endo’s bankruptcy estate. The trustee had accused McKinsey of contributing to the opioid crisis through its strategic advice to Endo on marketing its painkiller products.
The ruling by U.S. District Judge Paul Engelmayer found that many of the allegations made by the trustee fell short of adequately proving McKinsey’s liability. Notably, the judge determined that the complaint failed to demonstrate how McKinsey’s advice specifically violated legal standards or directly led to the public harm alleged. Despite the dismissal of most claims, McKinsey still faces ongoing legal challenges in this case, as certain claims were allowed to proceed, including those tied to allegations of aiding and abetting misconduct.
This dismissal adds to McKinsey’s defense strategy in numerous lawsuits across the country regarding its work with opioid manufacturers. The company has faced scrutiny over its role in advising these companies on high-impact sales strategies that allegedly exacerbated the opioid epidemic. McKinsey had previously settled investigations with state attorneys general for nearly $600 million, aiming to resolve similar allegations without admitting wrongdoing. For further details on the case’s developments, see the full report.
The opioid crisis, which has resulted in widespread litigation and settlements, continues to impact major pharmaceutical companies and their affiliates. Endo International itself filed for bankruptcy amid ongoing opioid-related liabilities. The company has reached settlements in several states but continues to face opposition regarding its proposed reorganization plan.
This legal development involving McKinsey underscores the complex web of litigation surrounding the opioid crisis. It highlights the ongoing efforts by various stakeholders, including bankruptcy trustees, state governments, and private entities, to hold corporations accountable for their roles in the proliferation of opioid medications.