Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124

Open the editor’s digest for free
FT editor Rula Khalaf picks her favorite stories in this weekly newsletter.
A ousted McKinsey partner who says he was made a “scapegoat” for the firm’s opioid work is expanding his demand for damages from the consulting firm following a $650 million legal settlement.
Arnab Ghatak said McKinsey managing partner Bob Sternfels had defamed him in a memo he sent to employees and students after a settlement with the Justice Department this month, fueling defamatory comments made by Sternfels and his company, according to court documents.
Ghatak was one of two partners fired in 2021 for violating the firm’s professional standards, including deleting documents over an email exchange.
The second partner, Martin Ealing, was found to have deleted more than 100 files related to his work Purdue PharmaThe maker of OxyContin and agreed to plead guilty this month to obstruction of justice.
The lack of any 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 $650 million. Advising Purdue and other opioid manufacturers to avoid criminal and civil charges against 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 officials who contributed its marketing advice. Infectious disease An addiction that has killed hundreds of thousands of Americans.
McKinsey says he regrets his opioid work. In the statements from the beginning Settlement In the year With state officials in 2021, he said he stopped working for opioid manufacturers, introduced new procedural consulting jobs and fired two senior partners “for talking about document deletion.”
Ghatak sued the company earlier this year claiming the termination was illegal and used as a scapegoat during the 2021 settlement. McKinsey and Sternfels’ statements redacted documents and are therefore defamatory, the suit says.
According to court records, Elling was arrested in 2011. In 2018, when U.S. officials were investigating Purdue, she sent a message to Ghatak: “We have noted in the FTA that Judy Lewent will be prosecuted by state attorneys general for her role on the Purdue board. It might be worth a quick chat with the risk committee to see if we need to do anything other than get rid of all our documents and emails. Don’t doubt it, but when things get tough, someone will turn to us.
Ghatak replied, “Thanks for the heads up. will do”
of charge Ghatak’s response, he says, indicates a check-in with senior management about the risks Purdue has to serve.
Ghatak seeks to add a new claim based on events that occurred after this month’s delayed Justice Department plea agreement.
According to the amended complaint, the DPA emphasized that “at no time did Dr. Ghatak do anything wrong, including at any time that the documents were improperly deleted.”
Despite this unequivocal finding, McKinsey continues to slander Dr. Ghatak in a memo distributed to current employees and alumni. . . A total of 100,000 people Dr. Ghatak discussed with another McKinsey partner ‘de-documentation’. This was a blatant lie that McKinsey knew, especially since McKinsey themselves admitted to creating the obstacle.
McKinsey responded, “We believe Dr. Ghatak’s claims are without merit, and his new allegations are irrelevant.”
The organization has indicated that it opposes Ghatak’s attempt to widen the case as it wants the case to be settled through arbitration rather than open court. The admissibility of the amended complaint will be decided by a New York judge after a hearing next month.