Publicis Groupe SA sign at its headquarters in Paris, France, Sunday, July 28, 2013.
Balint Pornezzi | Bloomberg | Getty Images
The healthcare arm of French advertising giant Publicis has agreed to pay $350 million to resolve allegations that its past marketing efforts against drug companies fueled the U.S. opioid crisis, a U.S. state attorney general said. announced on Thursday.
The agreement is the latest payout related to the prescription drug addiction epidemic, following settlements with major drug companies totaling tens of billions of dollars.
Publicis Health announced that $343 million of the total cost will be distributed among all 50 states, Washington, D.C., and five U.S. territories.
“The full settlement proceeds will quickly and directly contribute to opioid relief efforts in each state,” Publicis Health said in a statement. statement.
The group does not admit wrongdoing or liability as part of the settlement, which was reached after three years of negotiations. But the statement said: “We are aware of the broader circumstances in which that lawful work took place.”
“Fighting America’s opioid crisis requires collaboration across industry, lawmakers, and communities, and we are committed to doing our part,” the statement said.
Publicis Health noted that $130 million of the payments to the state were covered by insurance companies. The group said the total after-tax bill would be $160 million in cash.
“For a decade, Publicis helped Purdue Pharma and other opioid manufacturers persuade doctors to overprescribe opioids, directly fueling the opioid crisis and devastating communities across the country.” said New York Attorney General Letitia James, co-leader of the national coalition. press release.
“No amount of money can compensate for the lives lost and the harm caused by addiction, but with this agreement, Publicis will commit $350 million to end illegal activities and help communities rebuild. You’re going to pay,” James said.
New York will receive approximately $19.2 million from the total agreement, according to the state’s consent order with Publicis Health.
The states with the highest settlements were California, Florida, and Texas, which received $34.4 million, $24.1 million, and $21.6 million, respectively.
The states acknowledged that Publicis acted in “responsible corporate citizenship” and cooperated in the settlement “in good faith.”
Publicis Health noted that much of its work for the drug companies featured in the settlement was done by a company it owned called Rosetta, which went out of business a decade ago.
Publicis Health said in a statement that its work “was in full compliance with the law at all times.”
And it said Rosetta’s work was “used only with health care providers, not consumers, using communication tools and language expressly approved by the U.S. Food and Drug Administration.”
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