A Publicis Groupe SA sign is seen at its headquarters in Paris, France, on Sunday, July 28, 2013.
Balint Porneczi | Bloomberg | Getty Images
The health division of French advertising giant Publicis has agreed to pay $350 million to settle claims that its past marketing efforts for drugmakers helped fuel America’s opioid crisis, U.S. attorneys general announced Thursday.
The agreement represents the latest payout related to the prescription drug addiction epidemic, following tens of billions of dollars in settlements with leading pharmaceutical companies.
Publicis Health said it will spread $343 million of its total costs across all 50 states, plus Washington, D.C., and five U.S. territories.
“The full settlement amount should quickly and directly contribute to states’ opioid relief efforts,” Publicis Health said in a statement.
The group admits no wrongdoing or liability under the agreement, which resulted from three years of negotiations. However, the statement said: “We recognize the broader context in which this lawful work took place.”
“Fighting the opioid crisis in the United States requires collaboration across industries, legislators and communities, and we are committed to doing our part,” the statement said.
Publicis Health noted that $130 million of its payment to states was reimbursed by its insurers. After taxes, the total exposure is $160 million in cash, the group said.
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“For a decade, Publicis helped opioid manufacturers like Purdue Pharma convince doctors to overprescribe opioids, directly fueling the opioid crisis and devastating communities across the country,” said New York Attorney General Letitia James, a co- Chairman of the statewide coalition issued a press release.
“No amount of money can compensate for the lives lost and the addiction suffered, but with this agreement, Publicis will cease its illegal behavior and pay $350 million to help our communities rebuild,” James said.
According to the state’s consent agreement with Publicis Health, New York will receive nearly $19.2 million from the overall agreement.
The highest settlement amounts were allocated to California, Florida and Texas, which received $34.4 million, $24.1 million and $21.6 million, respectively.
The states confirmed that Publicis worked with them in “good faith” and with “responsible civic engagement” to reach an agreement.
Publicis Health noted that most of its work for the drug companies targeted in this settlement was done by a company it owned called Rosetta, which had closed a decade earlier.
This work “was in full compliance with the law at all times,” Publicis Health’s statement said.
And Rosetta’s work “was used exclusively with health care providers and not consumers, using means of communication and language expressly approved by the U.S. Food and Drug Administration,” it said.
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2024-02-01 19:56:53
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