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A fired McKinsey partner who says he was made a “scapegoat” for the company’s opioid work is stepping up his claim for damages from the consulting firm after a $650 million legal settlement with the US government.
Arnav Ghatak claims McKinsey managing partner Bob Sternfels defamed him in a memo sent to staff and alumni after a settlement with the Justice Department this month, according to court documents, adding to earlier defamatory comments by Sternfels and the firm.
Ghatak was one of two partners fired in 2021 for violating the firm’s professional standards because of an email exchange that referred to the deletion of documents.
A second partner, Martin Elling, deleted more than 100 files related to his work with her Purdue Pharmamaker of OxyContin, and agreed this month to plead guilty to obstruction of justice.
The absence of any action by the judiciary against Ghatak “vindicates” his position that he did nothing wrong, the former partner said on the day of the settlement.
McKinsey agreed Pay $650mn To avoid criminal and civil charges for advising Purdue and other opioid manufacturers, including health care fraud and obstruction of justice.
The consulting firm has now agreed to pay more than $1.6 billion to federal, state and local authorities who claimed its marketing advice contributed to a Epidemic Addiction that has killed hundreds of thousands of Americans.
McKinsey says it regrets its opioid work. His first statement disposal With state authorities in 2021, it said it stopped working for opioid manufacturers, introduced new procedures for vet consulting engagements and fired two senior partners for “communicating document deletions.”
Ghatak sued the firm earlier this year, claiming that his termination was illegal and that he was being used as a scapegoat during the 2021 settlement. Statements from McKinsey and Sternfels suggest he deleted the documents and are therefore defamatory, his suit claims.
According to court filings, Elling messaged Ghatak in 2018, while US authorities were investigating Purdue, saying: “Just saw in the FT that Judy Levant is being sued by the state attorney-general for her role on the Purdue board. It probably makes sense to have a quick conversation with the risk committee to see if there’s anything else we should be doing[n] Delete all our documents and emails. Do not doubt but as the going gets tough there are some who can turn to us.
Ghatak replied: “Thanks for the heads up. will”
D case Said Ghatak’s response referred to checking with senior leadership about the risks of serving Purdue.
Ghatak is seeking to add a new claim based on the incident after this month’s delayed prosecution deal with the Justice Department.
According to a proposed amended complaint, “DPA underscores that at no time did Dr. Ghatak commit any wrongdoing, including improperly deleting documents.”
“Despite this unequivocal finding, McKinsey continues to defame Dr. Ghatak, states a memorandum distributed to current employees and alumni. . . About 100,000 people in total, that Dr Ghatak ‘discussed document deletion’ with another McKinsey partner. This false statement by McKinsey was a knowing boldfaced lie, especially as McKinsey itself admitted to obstruction.”
McKinsey responded: “We believe Dr. Ghatak’s claims are without merit, and his proposed new allegations change nothing.”
The firm has sought to settle the case in arbitration rather than open court and has indicated it will oppose Ghatak’s efforts to expand the case. The admissibility of the amended complaint will be decided by a New York judge after a hearing next month.
