The White Mountain Apache Tribe sues McKinsey & Co. for playing an integral role in creating and deepening the opioid crisis.
Law360 (January 26, 2023, 9:13 PM EST) -- The White Mountain Apache Tribe on Wednesday hit McKinsey & Co. with a RICO suit over the firm's alleged role in the tribe's opioid epidemic in San Francisco federal court, claiming it aided opioid makers in executing a marketing strategy to boost sales of the addictive painkillers, joining a number of jurisdictions in the growing multidistrict litigation.
Easy access to prescription opioids contributed to many of the social problems the tribe faces today, such as poverty, child neglect, increased crime, unemployment and an overall "social despair" in the community, according to the lawsuit. The action accuses McKinsey of engaging in a criminal enterprise that pushed OxyContin and other opioids.
The 93-page complaint claims that McKinsey worked with pharmaceutical companies including Purdue Pharma and the Sackler family to push the drugs to an unsuspecting public, including the White Mountain Apache Tribe, with deceptive and misleading claims. It seeks damages under a number of federal statutes including the Racketeer Influenced and Corrupt Organizations Act.
"McKinsey played a central role in the sales and marketing of these Schedule II controlled substances in the United States for many years," the suit said. "Throughout that time, the purpose of McKinsey's actions was singular: making the most money possible no matter the resultant cost to society."
The tribe submitted the complaint to the District Court of the Northern District of California and seeks to join an Ohio-led MDL against McKinsey.
The tribe, located on a 1.67-acre reservation in Arizona, points out that it is a sovereign nation independent of the state. This is important because in February 2021 the attorney general of each state signed onto a nearly $600 million settlement with McKinsey ending similar claims. Arizona received roughly $13.3 million as part of this deal.
"The Tribe was not a party to this settlement, nor did it participate in the negotiations that led to it," the suit claims. "Therefore, as a separate sovereign, the Tribe is not impacted by McKinsey's settlement with the states." Read more.