Publicis Health has agreed to a $350 million settlement with US state attorneys general to resolve claims over its role in the opioid crisis.
The firm was accused of employing marketing strategies for pharmaceutical companies, causing the opioid crisis in America.
This settlement is part of a larger series of legal resolutions that have seen drug makers paying billions to mitigate the impact of the opioid epidemic.
Under the settlement terms, Publicis Health will allocate $343 million to all 50 US states, Washington, DC, and five territories.
The healthcare unit aims to bolster the ongoing efforts against opioid addiction.
Publicis Health said: “The full settlement amount should quickly and directly contribute to the States’ opioid relief effort.”
The company did not admit to any wrongdoing or liability as part of the settlement resulting from three years of negotiations.
“For a decade, Publicis helped opioid manufacturers like Purdue Pharma convince doctors to overprescribe opioids”
New York Attorney General Letitia James, representing the coalition of states involved, said: “For a decade, Publicis helped opioid manufacturers like Purdue Pharma convince doctors to overprescribe opioids, directly fueling the opioid crisis and causing the devastation of communities nationwide.”
New York will receive $19.2 million from the settlement, with substantial portions designated for California, Florida, and Texas.
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The distribution of funds reflects an effort to directly support the states’ initiatives against opioid misuse and recovery programs.
Publicis Health said the insurance covered a major portion of the settlement payment, $130 million, leading to a net cash outlay of $160 million after taxes.
The company clarified Rosetta conducted much of the contested work.
A previously owned subsidiary, Rosetta, ceased operations ten years ago.
Publicis claims Rosetta’s activities were legally compliant and approved by the US Food and Drug Administration.
The group says its focus was on healthcare providers, not on direct consumer marketing.
