Through a social media post, dated Wednesday, February 3, West Virginia Attorney General Patrick Morrisey said, “We must remain focused on fighting the drug epidemic. WV has made significant strides fighting opioids and other addictive drugs in recent years, but we can’t afford to fall backwards due to COVID. We’ll have some new initiatives to announce soon.”
As promised, those announcements started coming very quickly.
At a press conference on Thursday, February 4, Morrisey announced that a settlement has been reached with McKinsey and Company, Inc., a company that Morrisey alleges, “designed marketing plans and programs that helped fuel the state’s opioid epidemic.”
“Marketing efforts to boost the profits of opioid drugmakers have caused – and continue to cause – immense harm to West Virginia,” Morrisey said in a corresponding press release. “Such strategies valued profits above human life, and those responsible must be held accountable. These funds must be used to solve the root causes of opioid abuse, and I am committed to working to develop a long-term plan to help our state’s citizens and communities on a road to recovery.”
According to a written statement released by the attorney general’s office, “The settlement resolves allegations that McKinsey & Company Inc. collected millions from the nation’s largest opioid manufacturers, most notably a more than 15-year relationship with Purdue Pharma, to boost sales of OxyContin even well after the opioid epidemic peaked.
The Attorney General alleges 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 very crisis it helped create, all while still working for those same opioid makers.”
During the Press conference, the West Virginia Daily News had the opportunity to ask the Attorney General to further explain the “holistic approach” which he advocates, and how the settlement funds can be specifically used in support of that approach.
“One of the things that holds W.Va. back is the fact that we’ve had a huge substance abuse problem over the years,” Morrisey said. “I know we all talk about the tax code – it’s important that we modernize that. The need for the best educational system around. Broadband…that’s rightfully a priority of the legislature.”
Morrisey further stated, “We also have to address the problem of substance abuse in W.Va. Obviously, as the economy grows, that’s going to be one way that the problem gets dealt with, but you also have to make sure that there’s the right treatment and there’s the right reimbursement for the people that are providing these services. That people know about the detrimental effects of substance abuse. And that we’re dealing with it the right way. I think this holistic approach, handled differently [ ] trying to avoid sending the money into a black hole or pork projects, I’m talking about using it for real experts, people that have experience in the field. Make sure the money’s used the right way.”
The settlement, along with a corresponding lawsuit, was filed in Greenbrier County Circuit Court on the morning of Thursday, February 4.
According to the press release, “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.
The Attorney General further alleges McKinsey viewed the growing drug abuse crisis itself as a profit-making opportunity by suggesting Purdue manufacture and market opioid treatment and rescue medications.
In the face of mounting overdose deaths and lawsuits, McKinsey also proposed a plan for Purdue’s eventual exit from the opioid business.
The lawsuit alleges McKinsey also worked with Johnson & Johnson, Mallinckrodt LLC and Endo Health Solutions Inc., along with Purdue. Attorney General Morrisey filed suit against each of those manufacturers and one other in 2019.”
It should be noted that the settlement, in no way, constitutes an admission of guilt or wrongdoing on the part of McKinsey and Company, Inc.
All legal-work performed in reaching this settlement was performed by the attorney general’s office. Therefore, no portion of the $10 million settlement agreement will be diverted to the satisfaction of debts generated by outside legal-fees.
The West Virginia Daily News will provide more information on this situation as additional details are made available.
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