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From the New York Times article, "The amount McKinsey is paying is substantially more than it earned from opioid-related work with Purdue or Johnson & Johnson,
by leafmeal 6y ago
From the New York Times article, "The amount McKinsey is paying is substantially more than it earned from opioid-related work with Purdue or Johnson & Johnson, Endo International and Mallinckrodt Pharmaceuticals, its other opioid-maker clients, a person involved in the settlement negotiations said"
To me, "a cost of doing business" implies that they're making more money than it costs them. Here at least, that doesn't seem to be the case. So while this may not have been sufficient for retribution, I think it's easy to make the case that this will be a pretty good deterrent.
Consulting companies will start to realize that they can be liable for the advice the give.
https://www.nytimes.com/2021/02/03/business/mckinsey-opioids-settlement.html https://www.nytimes.com/2021/02/03/business/mckinsey-opioids...
- droopyEyelids 6y agoThe money they make is the total of all the money they make from shady immoral shit. The opioid project wasn't the only shady project contributing to their top line.
- totalZero 6y agoThe EV is the payoff times the probability. If there were only a 10% chance of paying (for example) treble damages without admitting guilt, then a company would take that bet repeatedly and the wins would more than pay for the losses.
- klmadfejno 6y agoPosted this a few times but it keeps getting brought up. A project like this would be ~$1M. The fine is ~$600M. Total McK revenue is ~$10,000M. It's wayyyy more than the cost of doing business. This project represents less than 0.001% of a year's revenue. Company is losing 5-6%.
- lapphi 6y ago> Most of the money will go to government programs fighting opioid addiction and providing treatment, North Carolina Attorney General Josh Stein said Thursday. The company helped “turbocharge” opioid sales for 15 years while consulting for Purdue and its billionaire owners, the Sackler family, Stein said. 15 years of work must have cost more than $1M https://www.aljazeera.com/economy/2021/2/4/mckinseytopay-573m-to-settle-claims-it-fueled-us-opioid-crisis https://www.aljazeera.com/economy/2021/2/4/mckinseytopay-573...
- spoonjim 6y agoLook at all the scumbag things McKinsey has done without paying any settlement. If there is a 10% risk of getting caught, from a decision calculus perspective this is a $57m fine.