Publicis To Pay $350M In First-Ever Opioid Marketing Settlement

In a historic move, Publicis Groupe SA PUBGY, a French advertising company, has agreed to a $350 million settlement over its alleged role in the opioid crisis. This marks the first time an advertising firm has been held accountable for its part in the epidemic.

What Happened: Publicis, the marketing company behind Purdue Pharma‘s OxyContin campaign, has settled with the New York and Colorado Attorneys General, reported CNN. The company will pay the sum within two months and will no longer take on any opioid-related clients.

The settlement, led by New York Attorney General Letitia James and Colorado Attorney General Phil Weiser, involves eight other states. The agreement also prohibits Publicis from taking on any future opioid-related projects.

"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 James in a statement. "No amount of money can compensate for lives lost and addiction suffered, but with this agreement, Publicis will cease their illegal behavior."

Publicis was accused of aiding Purdue Pharma in convincing doctors to overprescribe opioids, thus contributing to the opioid crisis. The company’s campaign, “Evolve to Excellence,” allegedly misled doctors about OxyContin’s addictive properties and encouraged them to increase patient doses, regardless of medical necessity.

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Publicis, which worked with consultancy McKinsey on the campaign, has denied any wrongdoing. However, the company hopes that the settlement will aid in the fight against opioid addiction.

"We recognize the broader context in which that lawful work took place," Publicis said in a statement. "The fight against the opioid crisis in the United States requires collaboration across industries, lawmakers, and communities, and we are committed to playing our part. That is why we worked to reach this agreement, and why we are also reaffirming our long-standing decision to turn down any future opioid-related projects."

Why It Matters: This settlement is a significant development in the ongoing legal battle against the opioid crisis. It sets a precedent for holding advertising companies accountable for their role in promoting addictive drugs.

Publicis’ settlement comes after McKinsey, its former partner, agreed to pay $573 million in 2021 for its alleged contribution to the opioid crisis. This series of settlements highlights the increasing scrutiny on companies involved in marketing and promoting opioids.

Publicis’ settlement also comes on the heels of the company’s announcement of a €300 million investment in AI to enhance its advertising capabilities. This move suggests that Publicis is looking to pivot its business model in response to the changing regulatory landscape.

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