On February 4, 2021, the Attorneys General of 47 states announced a $573 million joint settlement with the global consulting firm McKinsey & Company. The settlement, in which McKinsey did not admit wrongdoing, was predicated on McKinsey’s opioid-related marketing work for Purdue Pharma.
The complaints against McKinsey focused on the firm’s marketing advice to Purdue, which were alleged to have focused on increasing opioid sales through various means, including the targeting of high-volume prescribers, and reducing outside scrutiny. The complaints largely alleged violations of state consumer protection laws, which generally prohibit unfair, deceptive, or fraudulent practices, and can often be broadly construed by state Attorneys General. Of note, the settlement described above did not include the federal government, which may still pursue a standalone enforcement action against McKinsey. As previously described by Frier Levitt, the Department of Justice has applied federal laws in novel ways in its enforcement actions against entities involved in the opioid crisis, a trend now mirrored by the state-level action against McKinsey.
How Frier Levitt Can Help
With nearly 30,000 employees in over 135 cities, McKinsey is an established global consulting firm with focuses in both healthcare and pharmaceutical industries. The allegations in the McKinsey settlement reinforce that businesses cannot assume a company’s activities are sanctioned merely due to the size or reputation of that entity. All healthcare and life science arrangements, and in particular marketing relationships, have the potential to implicate a variety of federal and state laws, and require review by competent healthcare counsel. Marketers and companies utilizing the services of marketers must ensure not only the compliance of their direct contractual relationships, but must also remain cognizant of their business partners’ activities related to those underlying relationships. From conceiving compliant arrangements, to reviewing and renegotiating existing agreements, Frier Levitt approaches clients’ concerns holistically in order to provide comprehensive regulatory advice. Contact us for a compliance checkup.
