SOUTH DAKOTA REACHES $573 MILLION SETTLEMENT WITH McKINSEY & COMPANY INC. FOR ITS ROLE IN OPIOID EPEDEMICPrint PDF
Friday, February 5, 2021
PIERRE, S.D. - Attorney General Jason Ravnsborg has joined a coalition of attorneys general from 47 states, the District of Columbia and five U.S. territories in a $573 million settlement with one of the world's largest consulting firms, McKinsey & Company Inc., resolving investigations into the company's role in working for opioid companies, helping those companies promote their drugs, and profiting from the opioid epidemic.
The settlement, after payment of costs, will be used to abate problems caused by opioids in the participating states. South Dakota will receive $1,236,921.84* from the multistate settlement. This is the first multi-state opioid settlement to result in substantial payment to the states to address the epidemic.
In addition to providing funds to address the crisis, the agreement calls for McKinsey to prepare tens of thousands of its internal documents detailing its work for Purdue Pharma and other opioid companies for public disclosure online. In addition, McKinsey agreed to stop advising companies on potentially dangerous Schedule II and III narcotics.
"The opioid crisis has led to considerable harm to individuals and communities in South Dakota and across our nation," said Ravnsborg. "Over the last two decades we have witnessed addiction, abuse, families ravaged, lost economic opportunity and productivity, and more. This is a first step in righting this wrong."
Today's filing is the latest action Ravnsborg and his office has taken to combat the opioid epidemic and to hold accountable those who are responsible for creating and fueling the crisis. Details can be found in the Complaint and the Final Consent Judgment.
The states' investigation was led by an executive committee made up of the attorneys general of California, Colorado, Connecticut, Massachusetts, New York, North Carolina, Oklahoma, Oregon, Tennessee, and Vermont. The executive committee is joined by the attorneys general of Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Wisconsin, Wyoming, the District of Columbia, and the territories of American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
*Payment Schedule is as follows: $1,025,235.56 - within 60 days of effective date, around 1st week of April 2021
$52,921.57 - no later than April 2022
$52,921.57 - no later than April 2023
$52,921.57 - no later than April 2024
$52,921.57 - no later than April 2025