West Virginia Attorney General Patrick Morrisey announced the state has reached a independent, $10 million settlement with the national consulting firm McKinsey for its role in the marketing advice that fueled the opioid crisis.
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Allegations focused on McKinsey & Company Inc. collecting millions from the nation's largest opioid manufacturers, particularly from a 15-year relationship with Purdue Pharma, to boost sales of the time-lapse painkiller OxyContin including after the opioid epidemic peaked.
West Virginia's announcement came on the heels of a national, $573 million announcement involving 47 other states, the District of Columbia and five territories.
Morrisey said West Virginia settled independently to save on the cost of outside counsel as well as to avoid other restrictions resulting from the national suit.
'By filing this lawsuit independently and reaching it without use of outside counsel we've saved the state millions and millions of dollars,' Morrisey said in a news conference today.
He later added, 'There are a lot of similarities in terms of the terms involved. But I think this settlement puts West Virginia first.'
West Virginia's settlement requires McKinsey to pay $10 million to the state, prohibits the New York-based company from doing business related to opioids and requires McKinsey to develop a records retention system. The lawsuit alleged that some employees had considered deleting or destroying documents related to the company's work with Purdue.
The settlement and corresponding lawsuit were filed Thursday in Greenbrier County Circuit Court.
The Attorney General said he would work with the state Legislature to allocate settlement money to fight the effects of the opioid crisis in West Virginia.
'These monies should be used for recovery, for treatment and to help people get better in the head and the heart,' he said.
Morrisey contended McKinsey targeted high-volume prescribers, considered ways to conceal its activity and involved itself in conflicts of interest by consulting with governments and nonprofits to clean up the same crisis it helped create, all while still working for those same opioid makers.
The lawsuit alleges McKinsey's strategy targeted prescribers who wrote the most prescriptions to boost sales and specific patients to increase brand loyalty. For instance, McKinsey allegedly urged Purdue to consider direct-to-patient, mail-order pharmacies after scrutiny by a large pharmacy chain.
'Marketing efforts to boost the profits of opioid drug makers have caused – and continue to cause – immense harm to West Virginia,' Morrisey said. 'Such strategies valued profits above human life, and those responsible must be held accountable.'
West Virginia has been among the states hardest hit by the nation's opioid epidemic.
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In 2018, West Virginia providers wrote almost 70 opioid prescriptions for every 100 people. That's compared to the average U.S. rate of 51.4 prescriptions. West Virginia's rate was among the top ten in the nation that year
The state has suffered hundreds of opioid overdose deaths a year.
'There's no amount of money that can wipe away the harm and the death that occurred,' Morrisey said today.
The lawsuit alleges McKinsey also worked with Johnson & Johnson, Mallinckrodt LLC and Endo Health Solutions Inc., along with Purdue. The West Virginia Attorney General filed suit against each of those manufacturers and one other in 2019.
West Virginia has had its own, separate business relationship with McKinsey, which is a national marketing giant. McKinsey is the consulting firm that began WVU's 'WV Forward' efforts. That initiative also involved the state Department of Commerce to identify short-term, larger-scale projects to help boost West Virginia's economic development and assess the state's competitive edge.
Morrisey has faced scrutiny over the years because his office inherited a pill-dumping lawsuit against Cardinal Health, the nation's second largest prescription drug producer.
Earlier in his career, Morrisey did legal and lobbying work for some prescription drug companies including Cardinal Health. His wife, Denise Morrisey, is a lobbyist at Capitol Counsel, a Washington, D.C., firm, that represented Cardinal Health on opioid-related issues before Congress.
The lawsuit alleges McKinsey's strategy targeted prescribers who wrote the most prescriptions to boost sales and specific patients to increase brand loyalty. For instance, McKinsey allegedly urged Purdue to consider direct-to-patient, mail-order pharmacies after scrutiny by a large pharmacy chain.
'Marketing efforts to boost the profits of opioid drug makers have caused – and continue to cause – immense harm to West Virginia,' Morrisey said. 'Such strategies valued profits above human life, and those responsible must be held accountable.'
West Virginia has been among the states hardest hit by the nation's opioid epidemic.
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In 2018, West Virginia providers wrote almost 70 opioid prescriptions for every 100 people. That's compared to the average U.S. rate of 51.4 prescriptions. West Virginia's rate was among the top ten in the nation that year
The state has suffered hundreds of opioid overdose deaths a year.
'There's no amount of money that can wipe away the harm and the death that occurred,' Morrisey said today.
The lawsuit alleges McKinsey also worked with Johnson & Johnson, Mallinckrodt LLC and Endo Health Solutions Inc., along with Purdue. The West Virginia Attorney General filed suit against each of those manufacturers and one other in 2019.
West Virginia has had its own, separate business relationship with McKinsey, which is a national marketing giant. McKinsey is the consulting firm that began WVU's 'WV Forward' efforts. That initiative also involved the state Department of Commerce to identify short-term, larger-scale projects to help boost West Virginia's economic development and assess the state's competitive edge.
Morrisey has faced scrutiny over the years because his office inherited a pill-dumping lawsuit against Cardinal Health, the nation's second largest prescription drug producer.
Earlier in his career, Morrisey did legal and lobbying work for some prescription drug companies including Cardinal Health. His wife, Denise Morrisey, is a lobbyist at Capitol Counsel, a Washington, D.C., firm, that represented Cardinal Health on opioid-related issues before Congress.
Today, Morrisey said West Virginia's battle against the drug crisis continues and will be carried out through ongoing legal actions.
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'We're going to keep working to tackle this problem,' Morrisey said today.
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Read the Attorney General's lawsuit at https://bit.ly/2O6s8nX and the corresponding settlement terms at https://bit.ly/2YQk7W5.
