2024-02-01 20:33:49
The matter is now closed for Publicis. A subsidiary of the French advertising giant has reached an agreement with the American justice system, extending to all 50 American states, and will pay 350 million dollars, New York State prosecutor Letitia James said on Thursday. , which specified that it was the first advertising agency to conclude an agreement of this type in the context of the opioid crisis across the Atlantic.
“For a decade, Publicis helped opioid manufacturers like Purdue Pharma convince doctors to overprescribe opioids, directly fueling the opioid crisis and causing extinctions across the country,” said Letitia James. All states as well as several American territories will receive a share of this sum fixed within the framework of an agreement with Publicis Health, California to receive the largest amount ($34 million), according to the court decision which was consulted by AFP.
The story started in 2021 when the American state of Massachusetts launched a civil suit once morest the company Publicis Health, accusing it of having contributed to the opioid crisis by working – between 2010 and 2019 – on marketing solutions. from the Purdue Pharma laboratory which sought to convince doctors to prescribe its pain medication OxyContin.
“We will defend ourselves, if necessary”
For its part, Publicis Health argued that its relevant activities had been carried out by the American agency Rosetta, which it acquired in 2011 and then closed four years later. The group also ensures that all advertising services carried out by this agency for these products were “used only with health care providers, never with consumers, using only communication tools and terminologies approved by the FDA (Food and Drug).”
“We will defend ourselves, if necessary, once morest any dispute that this agreement fails to resolve,” assured Publicis Health, affirming that this did not represent an admission of fault or liability.
“As part of this agreement, following the settlement of $343 million to the States [ainsi que 7 millions en plus versés aux Etats américains qui ont porté le dossier devant la justice, NDLR], Publicis Health was reimbursed to the tune of $130 million by its insurers,” Publicis said regarding the financial aspect of the case. The group adds that it “recognized a non-recurring provision of $213 million before tax in the fourth quarter of 2023,” Publicis Health detailed. After taxes, this non-recurring charge corresponds to a disbursement of 160 million dollars, or 148 million euros. Clearly, this agreement will have no impact on the margin for the year 2023 or that of the current annual financial year.
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