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A ousted McKinsey partner who says he was made a “scapegoat” for the company's opioid operation is expanding his demand for damages from the consulting firm after a 650mn legal settlement with the US government.
Arnab Ghatak says McKinsey managing partner Bob Sternfels defamed him in a memo sent to employees and alumni after a settlement with the Justice Department this month, linking to previous defamatory remarks by Sternfels and the firm, according to court documents.
Ghatak was one of two partners fired in 2021 for violating the firm's professional standards over an email exchange that referred to the deletion of documents.
A second partner, Martin Elling, was found to have actually deleted more than 100 files related to his work Purdue Pharmathe maker of OxyContin, and agreed this month to plead guilty to obstruction of justice.
The lack of Justice Department action 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 its work advising Purdue and other opioid manufacturers, including aiding and abetting health care fraud and obstruction of justice.
The consulting firm has now accepted more than $1.6 billion in payments to federal, state and local authorities that its marketing advice contributed to an epidemic of infectious disease of slavery that killed hundreds of thousands of Americans.
McKinsey says he regrets his opioid work. In reports from its beginning stability and federal authorities in 2021, it has stopped working with opioid manufacturers, introduced new vet consultation programs, and fired two senior partners “for communicating about the removal of documents”.
Ghatak sued the company earlier this year saying his termination was illegal and that he was used as a scapegoat during the 2021 settlement. McKinsey and Sternfels' statements mean he deleted the documents and are therefore defamatory, his suit claims.
According to court filings, Elling texted Ghatak in 2018, when US authorities were investigating Purdue, saying: “I just saw in the FT that Judy Lewent is being sued by state attorneys general for her role on the Purdue Board. Maybe it makes sense to have a quick chat with the risk committee to see if we need to do anything else tha(n) to get rid of all our documents and emails. Don't worry but as things get tougher someone can turn on us. “
Ghatak replied: “Thank you for your heads. Will do”
I debt he says Ghatak's answer refers to looking at senior leaders about the risks of serving Purdue.
Ghatak wants to add a new claim based on the events behind the revoked prosecution agreement with the justice department.
“The DPA insists that Dr. Ghatak did nothing wrong, including improperly erasing documents,” according to the proposed complaint.
“Despite this finding being unclear, McKinsey continues to vilify Dr. Ghatak, citing a memorandum distributed to current staff and former students. . . a total of about 100,000 people, that Dr. Ghatak 'discussed the deletion of the document' with another McKinsey partner. This false statement by McKinsey was a bold lie, especially since McKinsey himself admitted to being disturbed. “
McKinsey responded: “We believe Dr. Ghatak's claims are without merit, and nothing in his new allegations changes anything.”
The firm wanted the case settled in arbitration instead of open court, and indicated it would oppose Ghatak's attempt to expand the suit. Acceptance of the amended complaint will be decided by a New York judge after a hearing next month.