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    McKinsey Is Under Criminal Investigation for Its Opioid Work

    Federal prosecutors are examining the consulting company’s role in helping “turbocharge” the sale of painkillers like OxyContin.The Justice Department is investigating McKinsey & Company, the international consulting giant, for its role in helping drug companies maximize their sale of opioids.The investigation is led by the U.S. attorneys’ offices in Massachusetts and the Western District of Virginia in coordination with the department’s civil division in Washington, according to two officials familiar with the case who spoke on condition of anonymity.Since 2021, McKinsey has agreed to pay about $1 billion to settle investigations and lawsuits across the United States related to the firm’s work with opioid makers, principally Purdue Pharma, the maker of OxyContin. McKinsey recommended that Purdue “turbocharge” its sales of the drug in the midst of the opioid crisis, which has killed hundreds of thousands of Americans. McKinsey has not admitted any wrongdoing.News of the criminal investigation was first reported by The Wall Street Journal on Wednesday.The investigation has been underway for several years. Endo, a pharmaceutical company that hired McKinsey to advise on the sale of the opioid Opana, said in a regulatory filing that it received a subpoena in December 2020 from the Western District of Virginia seeking information about McKinsey. The New York Times reported on the existence of that subpoena in 2022. Last year another opioid maker, Mallinckrodt, said it received a grand jury subpoena from the same U.S. attorney’s office but did not mention any connection to McKinsey.Federal prosecutors are also looking into whether McKinsey obstructed justice in its handling of records, according to The Journal.By 2018, senior McKinsey consultants were growing increasingly worried that they might be held to account for their opioid work. On July 4 of that year, Martin Elling, a leader in the firm’s pharmaceutical practice, made a decision he would later regret. He sent an email to Arnab Ghatak, a senior partner, asking whether they should eliminate documents and emails connected to opioids.Mr. Ghatak replied: “Thanks for the heads up. Will do.”Both men were fired after The Times reported in 2020 about the existence of the emails.It isn’t unusual for criminal investigations like this to go on for many years, especially ones involving two U.S. attorneys’ offices, the Justice Department and possibly state agencies as well, Rick Mountcastle, a former federal prosecutor, said.He led a criminal investigation into Purdue Pharma that resulted in the company’s guilty plea in 2007 to having misled regulators, doctors and patients about the dangers of OxyContin. “It is a huge monster bureaucracy that moves at a very slow pace,” said Mr. Mountcastle, who was not a source confirming the existence of the investigation.McKinsey made about $86 million over many years advising Purdue Pharma. The bulk of that work took place after Purdue’s guilty plea. In 2019, McKinsey said it would no longer advise clients on opioid-related business.Ramiro Prudencio, a spokesman for McKinsey, declined to comment. A spokesman for the Justice Department had no comment on the case. More

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    Macron Goes on Defensive Over Use of McKinsey and Other Consultants

    President Emmanuel Macron’s opponents have criticized the French government for paying at least a billion dollars last year to private consulting firms.PARIS — In a sedate presidential race overshadowed by pandemic and war, it’s the one issue that has so far managed to ruffle an otherwise supremely confident President Emmanuel Macron: McKinsey.Yes, McKinsey, the American consulting firm.With about a week left before the French go to the polls, McKinsey and its proximity to Mr. Macron’s government has unexpectedly emerged as a campaign issue — putting Mr. Macron on the defensive and forcing his ministers to try to extinguish the controversy.The other presidential contenders, frustrated for months by Mr. Macron’s refusal to debate, have seized on McKinsey as a way to hit at what polls have long shown to be one of his great weaknesses: Mr. Macron’s image as an arrogant and aloof president of the rich, prone to a solitary and secretive decision-making style, out of touch with the concerns of ordinary French people.The issue had been percolating for a few weeks since the release of a damning report by the Senate showing that McKinsey and other firms — highly paid and politically unaccountable private consultants — earned at least $1 billion last year to do work on sensitive matters for the government.That amount followed already yearly increases in work for McKinsey and other consulting firms during Mr. Macron’s five-year presidency and a sharp acceleration during the coronavirus pandemic and France’s vaccine rollout.The 380-page Senate report, which stemmed from a four-month inquiry, described the firms’ influence on the government as “tentacular,” detailing how private consultants routinely sat in on ministry meetings and anonymously wrote government reports.McKinsey offices in New York. The company’s proximity to Mr. Macron’s government has unexpectedly emerged as a campaign issue in the French election.Emon Hassan for The New York TimesIt added that the government’s use of consultants had become “a reflex,” with consulting firms being “involved in most of the major reforms” in France, such as the overhaul of housing benefits or of unemployment insurance.The issue rose to the surface this week after Mr. Macron finally began holding full-fledged campaign events and was confronted several times with it. Mr. Macron reacted angrily, at times justifying the practice of hiring consultants and then trying to deflect responsibility.“I’m not the one who signs the contracts,” Mr. Macron said during a campaign stop in Dijon, eastern France this week, adding, “a lot of stupid things have been said in recent days.”Learn More About France’s Presidential ElectionThe run-up to the first round of the election has been dominated by issues such as security, immigration and national identity.On Stage: As the vote approaches, theaters and comedy venues are tackling the campaign with one message: Don’t trust politicians. Behind the Scene: In France, where political finance laws are strict, control over the media has provided an avenue for billionaires to influence the election.A Political Bellwether: Auxerre has backed the winner in the presidential race for 40 years. This time, many residents see little to vote for.Private Consultants: A report showing that firms like McKinsey earned large sums of money to do work for his government has put President Emmannuel Macron on the defensive.But as the issue stuck, the government went on the defensive, scheduling a news conference for Thursday and then moving it up to Wednesday evening at the last minute.Chloé Morin, a political scientist at the Jean-Jaurès Foundation, a Paris-based think tank, said that the issue struck several sensitive chords among the French public and played on a particular vulnerability for Mr. Macron, a former investment banker who as a politician has made it his mission to bring businesslike efficiency to the structures of the state.“One of the criticisms leveled at Emmanuel Macron since 2017 is that he is the president of the rich, a president of the private sector, a president who’s from the world of finance, and in France, there is a great distrust of the world of consultants and finance,” Ms. Morin said. “And so this revives the image of a president serving the interests of big donors and big banks.”Before entering politics, Mr. Macron worked at the investment bank Rothschild. As president, while the overall economy has grown, his policy mix of tax cuts and deregulation has tended to favor the wealthy.Mr. Macron’s presidency is also remembered for a series of disdainful comments he has leveled at ordinary people and their everyday concerns — an attitude that fueled the Yellow Vest movement of demonstrations against Mr. Macron’s economic policies.A Yellow Vest rally in Paris in 2019 to protest Mr. Macron’s economic policies.Kiran Ridley/Getty ImagesThe growing reliance on private, confidential consultants also reinforces the impression of Mr. Macron’s management style. As president, he has embraced, more than any of his immediate predecessors, the concentration of powers afforded the presidency in France’s Fifth Republic. During his presidency, as well as during his campaign for re-election, Mr. Macron has governed largely in secrecy, relying on his right-hand man, the general secretary of the Élysée Palace, Alexis Kohler.Caroline Michel-Aguirre, a French investigative reporter who co-wrote “The Infiltrators,” a book on the growing presence of consulting firms within the state apparatus, said that the government’s use of consulting firms “was set up in a secret way” and posed “a democratic issue.”“It took the involvement of the National Assembly, our book, a Senate inquiry commission and a controversy for the government to finally announce” that it would publish figures on government contracts with consulting firms, Ms. Michel-Aguirre said.Mr. Macron remains the favorite going into the first round of voting on April 10. But he has slipped a bit in the polls. His main rival, the far-right leader Marine Le Pen, has been visiting communities in rural France and focusing laserlike on a single issue: the rising cost of living, made worse by the war in Ukraine and increasing fuel prices.Ms. Le Pen and most of Mr. Macron’s other political opponents have seized on the consulting firms to accuse Mr. Macron of selling off the state.The Senate’s report said that the situation raised issues about the state’s “sovereignty in the face of private firms” and about “the proper use of public funds.”Who Is Running for President of France?Card 1 of 6The campaign begins. More