On November 3, 2022, the Attorneys General of nine states (California, Colorado, Connecticut, Idaho, Oregon, New York, North Carolina, Tennessee, and Vermont) advised that they considered Publicis Health, LLC to have legal exposure related to its work for opioid manufacturers, including Purdue Pharma.
Publicis Health was engaged in discussions with the Executive Committee and reached in December 2023 an agreement‑in‑principle to settle claims on behalf of all 50 states (including Massachusetts as well as all States mentioned above), the participating U.S. territories, and the District of Columbia that could be brought by those States and U.S. Territories arising from or related to Publicis Health’s work for opioid manufacturers.
On February 1, 2024, the attorneys general for all 50 states, the District of Columbia, and certain U.S. Territories announced their joinder in the agreement‑in‑principle and filed proposed consent judgments in courts in their respective jurisdictions that memorialize the terms of the agreement. When entered by the courts, the consent judgments will resolve all claims that could be brought by those States and U.S. Territories related to past work undertaken for opioid manufacturers, including by former advertising agency Rosetta (merged in Publicis Health, LLC).
The Attorneys General have recognized Publicis Health’s good faith and responsible corporate citizenship in reaching this resolution. After discussions, this settlement brings the matter to a close with the payment of dollar (343) million paid in 2023 into an escrow account allocated to the States, U.S. Territories and the District of Columbia), and dollar (7) million deposited to reimburse the Settling States for attorney fees, costs, and expenses associated with the investigation and to fund the document repository. The full settlement amount (dollar 350 million) is offset by an insurance reimbursement of dollar 130 million (received by Publicis in a bank payment account in 2023). Therefore, the net non‑current expense recorded in 2023 is dollar 220 million (euro 203 million) before tax. The expense, net of tax, equals to euro 152 million and the impact on the cash of the Group is a payment of euro 148 million in 2023.
This settlement is in no way an admission of wrongdoing or liability. Publicis Health LLC will, if need be, defend itself against any litigation that this agreement does not resolve such as those filed by tribes or units of local government.
