French ad firm Publicis to pay $350M to settle US opioid crisis claims

By Ovunc Kutlu

ISTANBUL (AA) - French advertising and public relations firm Publicis announced Thursday that it has agreed to pay $350 million to settle claims that its marketing efforts for drug makers helped fuel the opioid crisis in the US.

"A comprehensive resolution has been reached with all 50 State Attorneys General, the District of Columbia, and certain U.S. Territories related to past work undertaken for opioid manufacturers primarily by former advertising agency Rosetta, bringing to a close almost three years of discussions," the company said in a statement.

Its subsidiary Publicis Health has been compensated by its insurers for $130 million, it added.

New York Attorney General Letitia James' office said in a separate statement that Publicis worked with Purdue Pharma to develop marketing campaigns and materials promoting opioids including OxyContin, Butrans and Hysingla from 2010 through 2019.

It added that Publicis was responsible for creating advertisements and materials such as pamphlets and brochures that promoted OxyContin as safe and unable to be abused, even though this claim was not true.

"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," said Attorney General James. "No amount of money can compensate for lives lost and addiction suffered, but with this agreement, Publicis will cease their illegal behavior and pay $350 million to help our communities rebuild."

While this is the first settlement with an ad agency for its role in the opioid crisis, New York will receive around $19.2 million as a result of the agreement, which will be used to fund opioid abatement, treatment and prevention, it added.