The current criminal investigation, announced today, is into whether McKinsey is guilty of conspiracy for marketing recommendations to Purdue and others to downplay the addictive nature of opioids, conspiracy to commit healthcare fraud through insurance claims, and obstruction of justice.
Update 2024-13-12 (PST) (AI summary of creator comment): - Market will resolve YES based on McKinsey being charged with criminal misbranding and obstruction of justice, subject to deferred prosecution
Resolution criteria met through criminal charges filed in U.S. District Court for the Western District of Virginia against McKinsey's U.S. subsidiary, including:
One felony count of knowingly destroying records
One misdemeanor count of knowingly conspiring with Purdue
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Hmm... @traders I believe this resolves YES, but will hold off for a day or so in case I am understanding this wrong.
McKinsey is charged with "criminal misbranding" and obstruction of justice, subject to deferred prosecution
One senior partner was charged with and pled guilty to obstruction of justice
As part of the government’s resolution with McKinsey, the company has entered into a five-year deferred prosecution agreement (DPA) (part one and part two) in connection with a criminal Information filed in U.S. District Court for the Western District of Virginia against McKinsey’s U.S. subsidiary (McKinsey & Company Inc. United States, “McKinsey U.S.”). The information charges McKinsey U.S. with one felony count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department; and one misdemeanor count of knowingly and intentionally conspiring with Purdue and others to aid and abet the misbranding of prescription drugs, held for sale after shipment in interstate commerce, without valid prescriptions.
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Additionally, a former McKinsey senior partner who worked on Purdue matters has been charged with obstruction of justice in federal court in Abingdon, Virginia. Martin E. Elling, 60, a U.S. citizen currently residing in Bangkok, Thailand, has been charged with one count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department. Elling has agreed to plead guilty and is expected to appear in federal court in Abingdon to enter his plea and for sentencing at later dates.
NEW YORK, May 14 (Reuters Breakingviews) - McKinsey could use some of its own advice. After guiding the strategies of some of the world’s largest companies for nearly a century, the elite consulting firm finds itself under criminal investigation, opens new tabrelated to its recommendations to drugmakers on how to “turbocharge” sales of opioids, according to the Wall Street Journal. An indictment against Arthur Andersen more than two decades ago proved to be a death knell for the auditing giant, and it is an instructive example for what happens next….
https://www.reuters.com/breakingviews/memo-mckinsey-avoiding-arthur-andersens-fate-2024-05-14/