User:Az.cr66/McKinsey & Company

McKinsey Summary
Over the years of operation, McKinsey & Company have faced multiple scandals from the company's role in the opioid epidemic to insider trading and consultation of Rikers Island jail complex.

Valeant
MIO Partners was a private investor of Valeant and McKinsey consulted Valeant on drug prices and acquisitions.

Role in Opioid Epidemic
Records show that McKinsey worked for Purdue Pharma and other opioid makers in a 15 year period, from 2004 to 2019. During 2018 and 2019, McKinsey collected at least $400 million consulting pharmaceutical companies. McKinsey advised Mallinckrodt, the largest manufacturer of generic opioids, as well as Endo for which McKinsey consulted on marketing Opana. McKinsey's consultation grew Endo into a leading generics manufacturer. McKinsey recommended targeted and influenced doctors who treat back pain in elderly and long-term care patients. In 2019, McKinsey projected that over 2,400 CVS customers would have an overdose or become reliant on opioids. McKinsey estimated that a rebate of $14,810 per "event" would mean that Purdue would have to pay CVS $36.8 million that year.

GreenSky Insider Trading
An ex-partner at McKinsey was sentenced to 24 months in prison for insider trading. The ex-partner helped advise Goldman Sachs Group on the recent purchase of fintech company GreenSky Inc. The ex-partner bought 2,500 GreenSky call options before the $2.24 billion merger and sold the call options shortly after the merger was announced on September 15, 2021. The ex-partner was ordered to hand over approximately $450,000 of illegal profit.

Rikers Island Jail Complex
McKinsey advised New York City's Rikers Island jail complex and tested an anti-violence strategy named "Restart" which occurred in Rikers housing units. The results of the strategy reported that violent crimes dropped more than 70% inside the Rikers housing units. Later, it was found that McKinsey consultants and jail officials rigged the program by grouping compliant inmates into the housing units.

Fine for insider trading by investment affiliate
In 2019, McKinsey paid the Justice Department $15 million to settle allegations relating to failure to disclose potential conflict in three bankruptcy cases that the firm advised. The SEC claimed that MIO Partners had advaced knowledge of upcoming mergers, bankruptcy, and financial results announcements for companies that the firm was consulting.