The Blubber

Consulting firm McKinsey & Co. is nearing a deal with U.S. prosecutors to pay at least $500 million to resolve federal investigations into its past work with opioid manufacturers, according to a report by Bloomberg News on Wednesday.

The settlement, expected to be announced in the coming weeks, would settle both criminal and civil probes by the Justice Department, as reported by sources familiar with the situation. Federal prosecutors have been investigating McKinsey's involvement in the opioid crisis, focusing on its advisory role for Purdue Pharma, the maker of OxyContin, and other drug companies.

The investigation is examining whether McKinsey engaged in criminal conspiracy by advising pharmaceutical companies on marketing strategies that contributed to the increased sales of prescription painkillers, which fueled widespread addiction and overdose deaths.

McKinsey has already reached settlements totaling nearly $1 billion to resolve numerous opioid-related lawsuits. These agreements involve all 50 U.S. states, Washington, D.C., U.S. territories, local governments, school districts, Native American tribes, and health insurers.

In 2019, McKinsey announced it would no longer advise clients on opioid-related matters. The company has maintained that none of the previous settlements include admissions of liability or wrongdoing.