Consulting firm McKinsey & Co has agreed to contribute $125 million to Purdue’s bankruptcy settlement.

• Reminder: Purdue received bankruptcy court approval for a $7.4 billion restructuring plan in Nov., resolving claims that it fueled the opioid crisis. The money from McKinsey will go toward this settlement. McKinsey also previously agreed to pay $1.6 billion in settlements with the Department of Justice, states, and local governments over its role in the opioid crisis.

The details:

• The broader Purdue bankruptcy settlement had left open the possibility that Purdue could pursue legal claims against McKinsey over marketing advice that contributed to the company’s downfall.
• McKinsey’s contribution resolves these potential legal claims over advice the company provided to Purdue on how to “turbocharge” OxyContin sales. It does not include admission of wrongdoing.
• The new agreement will add $50 million to the expected recovery for individuals harmed by the opioid crisis. This group had previously been expected to get about $865 million.

Next steps: The bankruptcy court must approve the settlement. If it does, McKinsey will pay $65 million next month and the remaining $60 million in 2027.