McKinsey & Company · opioids · criminal prosecution · deferred prosecution agreement · civil settlement
What did McKinsey agree to over its opioid work for Purdue Pharma, and what happened to the former partner who destroyed records?
McKinsey has not been convicted. On 13 December 2024 its US entity entered a five-year deferred prosecution agreement with the US Department of Justice on a criminal information charging conspiracy to aid and abet the misbranding of prescription drugs and destruction of records, agreed to a 71-page statement of facts, and agreed to pay $650 million to resolve criminal and civil investigations into its work for Purdue Pharma. Former senior partner Martin Elling pleaded guilty on 10 January 2025 to destroying records to obstruct a federal investigation and was sentenced on 22 May 2025 to six months in prison. Earlier, McKinsey settled with state attorneys general for $573 million in 2021 and with local governments and school districts for $230 million in 2023, saying the 2023 settlement contains no admission of liability or wrongdoing.
Last verified 30 October 2026. United States
The record at a glance
| What was alleged? | The Justice Department charged in a criminal information in the Western District of Virginia that McKinsey's US entity conspired with Purdue Pharma and others to aid and abet the misbranding of prescription drugs, and knowingly destroyed records to impede a federal investigation. State attorneys general and local governments alleged in civil suits that McKinsey's advice to opioid makers, including on boosting OxyContin sales, contributed to the opioid crisis.1,2,3 |
|---|---|
| Who made the claim? | US Department of Justice, and state attorneys general and local governments (civil claimants), 13 December 2024 |
| How did McKinsey respond? | In its December 2024 statement McKinsey said it had agreed to accept responsibility for its conduct, apologised for its past client service to Purdue Pharma and said it should not have undertaken sales and marketing work for Purdue. In the 2023 civil settlement McKinsey said it continued to believe its past work was lawful and that the settlement contained no admission of liability or wrongdoing.3,4 (the subject's position) |
| Was there an official finding? | McKinsey's US entity entered a five-year deferred prosecution agreement and agreed to pay $650 million on 13 December 2024. It has not been convicted.1 Former senior partner Martin Elling pleaded guilty to destroying records and was sentenced to six months in prison.6,7 McKinsey paid $573 million under a 2021 multistate settlement and agreed to a $230 million settlement with local governments and school districts in 2023.2,3 |
| Was liability determined? | No, liability was not determined. No court has determined McKinsey's criminal liability and it has not pleaded guilty or been convicted. Prosecution on the two-count information is deferred under a five-year DPA. Under the resolution McKinsey agreed to a 71-page statement of facts, the Justice Department states that McKinsey US admitted it did not inform the FDA that its consultants worked on the Purdue projects, and McKinsey says it agreed to accept responsibility for its conduct. The False Claims Act portion is a civil settlement. McKinsey stated that the 2023 settlement with local governments contains no admission of liability or wrongdoing, and whether the 2021 multistate settlement contains such a clause was not confirmed. Elling, as an individual, was convicted on his guilty plea.1,3,4,7 |
| What changed later? | As of 30 October 2026 McKinsey is within the term of its 2024 deferred prosecution agreement and Elling's sentence has been imposed.1,7 |
| When was this checked? | 30 October 2026 |
What was alleged?
The Justice Department charged in a criminal information in the Western District of Virginia that McKinsey's US entity conspired with Purdue Pharma and others to aid and abet the misbranding of prescription drugs, and knowingly destroyed records to impede a federal investigation. State attorneys general and local governments alleged in civil suits that McKinsey's advice to opioid makers, including on boosting OxyContin sales, contributed to the opioid crisis.1,2,3
Made by US Department of Justice, and state attorneys general and local governments (civil claimants) on 13 December 2024.
What did McKinsey say?
In its December 2024 statement McKinsey said it had agreed to accept responsibility for its conduct, apologised for its past client service to Purdue Pharma and said it should not have undertaken sales and marketing work for Purdue. In the 2023 civil settlement McKinsey said it continued to believe its past work was lawful and that the settlement contained no admission of liability or wrongdoing.3,4
"We are deeply sorry for our past client service to Purdue Pharma"
McKinsey & Company (company statement), 13 December 2024. This is the subject's own account, not a finding.
What do independent records show?
Multistate settlement with McKinsey & Company
Attorneys general of 47 states, the District of Columbia and five US territories, 4 February 2021
McKinsey agreed to pay $573 million, to publish internal documents on its opioid work, to adopt document retention rules, to investigate alleged document destruction by two partners and to stop advising on Schedule II and III narcotics.2
Proposed settlement, In re McKinsey & Co. Inc. National Prescription Opiate Consultant Litigation
McKinsey & Company and political subdivisions and school districts in multidistrict litigation, 26 September 2023
McKinsey agreed to pay $230 million. Its statement said the settlement contains no admission of liability or wrongdoing. Judge Charles Breyer later granted final approval.3,5
Deferred prosecution agreement and civil settlement with McKinsey & Company, Inc. United States
US Department of Justice and US Attorney's Offices for the Western District of Virginia and the District of Massachusetts, 13 December 2024
Five-year DPA on a criminal information filed in the US District Court for the Western District of Virginia charging one felony count of knowingly destroying records and one misdemeanor count of conspiring with Purdue and others to aid and abet misbranding. $650 million total, including a criminal penalty of more than $231 million, forfeiture of more than $93 million, $2 million to the Virginia Medicaid Fraud Control Unit and more than $323 million to resolve False Claims Act liability. McKinsey agreed to a 71-page statement of facts, compliance measures, no work on the marketing, sale, promotion or distribution of controlled substances during the five-year term, and a five-year Corporate Integrity Agreement with HHS-OIG. The Justice Department states that McKinsey US admitted it did not inform the FDA that its consultants worked on the Purdue projects, credits it with stopping opioid-specific work in 2019, and describes the details in the charging documents and civil resolution as merely allegations.1
Guilty plea, United States v. Martin Elling
US District Court for the Western District of Virginia, 10 January 2025
Elling pleaded guilty to a one-count information charging him with knowingly destroying records to impede a Justice Department investigation.6
Sentence, United States v. Martin Elling
US District Court for the Western District of Virginia, 22 May 2025
Six months in prison, two years of supervised release, 1,000 hours of community service and a $40,000 fine.7
What was established?
- McKinsey's US entity entered a five-year deferred prosecution agreement and agreed to pay $650 million on 13 December 2024. It has not been convicted.1
- Former senior partner Martin Elling pleaded guilty to destroying records and was sentenced to six months in prison.6,7
- McKinsey paid $573 million under a 2021 multistate settlement and agreed to a $230 million settlement with local governments and school districts in 2023.2,3
Distinctions that matter here
- A deferred prosecution agreement is not a conviction. Charges are filed but prosecution is deferred, and they may be dismissed if the company complies with the agreement.
- Agreeing to a statement of facts under a DPA is not a guilty plea and not a court finding of guilt. McKinsey said its 2023 civil settlement contains no admission of liability.
- A former partner's individual guilty plea is a conviction of that person, not of the firm.
Was liability determined?
No, liability was not determined. No court has determined McKinsey's criminal liability and it has not pleaded guilty or been convicted. Prosecution on the two-count information is deferred under a five-year DPA. Under the resolution McKinsey agreed to a 71-page statement of facts, the Justice Department states that McKinsey US admitted it did not inform the FDA that its consultants worked on the Purdue projects, and McKinsey says it agreed to accept responsibility for its conduct. The False Claims Act portion is a civil settlement. McKinsey stated that the 2023 settlement with local governments contains no admission of liability or wrongdoing, and whether the 2021 multistate settlement contains such a clause was not confirmed. Elling, as an individual, was convicted on his guilty plea.1,3,4,7
What remains unresolved?
- Compliance with the DPA during its five-year term, which runs from December 2024.
- Whether the 2021 multistate settlement included an express non-admission clause was not confirmed in the sources read.
What is the current status?
As of 30 October 2026 McKinsey is within the term of its 2024 deferred prosecution agreement and Elling's sentence has been imposed.1,7
As of 30 October 2026. No next proceeding is scheduled in the records we found.
Timeline
- $573 million settlement with 47 states, the District of Columbia and five territories.2
- McKinsey announces a $230 million settlement with local governments and school districts.3
- Federal court grants final approval of the $230 million settlement.5
- Justice Department announces the DPA and $650 million resolution.1
- Martin Elling pleads guilty.6
- Elling sentenced to six months in prison.7
Sources
- US Department of Justice, Office of Public Affairs, Justice Department Announces Resolution of Criminal and Civil Investigations into McKinsey & Company's Work with Purdue Pharma, 13 December 2024 · document record Government, parliamentary or audit document
- Alaska Department of Law, Attorney General Taylor announces $573 million settlement with McKinsey & Company, 4 February 2021 · document record Government, parliamentary or audit document
- McKinsey & Company, Statement on proposed settlement agreement with political subdivisions, 26 September 2023 · document record Filing or formal statement by the subject
- McKinsey & Company, McKinsey opioid facts (updated December 2024), 13 December 2024 · document record Filing or formal statement by the subject
- Lieff Cabraser Heimann & Bernstein (plaintiffs' counsel), Plaintiffs' counsel announce that court grants final approval to McKinsey's $230M opioid settlement with cities, schools, 5 February 2024 Secondary commentary
- US Attorney's Office for the Western District of Virginia, Former Senior Partner at McKinsey & Company Pleads Guilty, 10 January 2025 · document record Government, parliamentary or audit document
- US Attorney's Office for the Western District of Virginia, Former Senior Partner at McKinsey & Company Sentenced, 23 May 2025 · document record Government, parliamentary or audit document
Revision history
- 30 October 2026: First published after source verification.
Related: McKinsey & Company, opioids, criminal prosecution, deferred prosecution agreement, civil settlement, United States. To submit a document or request a correction, see right of reply.