FAST FIVE: After Helping OxyContin Maker 'Turbocharge' Sales, McKinsey Cuts Ties With Purdue Pharma
McKinsey's reputation has taken a beating over the past year, largely thanks to a flurry of New York Times' stories detailing the secretive consulting giant's work with authoritarian governments, while exposing conflicts of interest involving the firm's bankruptcy business and its internal hedge fund (the former led to a wrist-slap fine from the DoJ).
According to Bloomberg, which quoted from the Massachusetts lawsuit, McKinsey even formulated a pitch that it said would help Purdue “turbocharge” sales.
JP Morgan, which was among the banks that treid to 'limit' ties to gun-makers and sellers after the Parkland shooting, has told Purdue that it will need to do its banking somewhere else.
JPM's decision makes it “the most high-profile corporation known to have distanced itself from Purdue and its wealthy owners, the Sackler family,” Reuters said.
JPM reportedly told Purdue that its decision was motivated by 'reputational risks'.