Publicis: U.S.-Wide Settlement Agreement Reached Concerning Opioid- Related Work by Rosetta, Bringing to a Close Three Years of Discussions
01 Februar 2024 - 6:38PM
Business Wire
Regulatory News:
Publicis (Paris:PUB):
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 Attorneys General have recognized Publicis Health’s good
faith and responsible corporate citizenship in reaching this
resolution.
As the former owner of Rosetta, which was shuttered ten years
ago, Publicis Health issued the following statement:
“After three years of discussions, this settlement brings the
matter to a close with a net payment of €148 million. The full
settlement amount should quickly and directly contribute to the
States’ opioid relief effort.
This settlement, in which the Attorneys General recognized
Publicis Health’s ‘good faith and responsible corporate
citizenship’, is in no way an admission of wrongdoing or liability.
We will, if need be, defend ourselves against any litigation that
this agreement does not resolve.
“The work for pharmaceutical companies addressed by this
settlement was at all times fully compliant with the law. It was
undertaken primarily by Rosetta, a small agency shuttered ten years
ago, that was already working with pharmaceutical clients that
manufactured opioid medication when it was acquired thirteen years
ago in 2011. Its work related to these products was used solely
with healthcare providers, not consumers, using communication tools
and language expressly approved by the FDA. Rosetta’s role was
limited to performing many of the standard advertising services
that agencies provide to their clients, for products that are to
this day prescribed to patients, covered by major private insurers,
Medicare, and authorized by State Pharmacy Boards.
“We recognize the broader context in which that lawful work took
place. 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.”
**********
About the Financial Effects of this U.S.-wide settlement
In the context of this settlement, following the payment of $343
million to the States, Publicis Health has been compensated by its
insurers for $130 million. Consequently, it has recorded a
non-recurring charge of $213 million before tax in the fourth
quarter of 2023. After tax, this non-recurring charge amounted to
$160 million in cash, or €148 million euros. These transactions
will be fully reflected in Publicis Groupe’s 2023 financial
statements. Given its non-recurring nature, the settlement will be
accounted for below the Operating Margin and will be adjusted from
the free cash flow before change in WCR in 2023. Thus, the
settlement has no impact on the Groupe’s 2023 guidance.
About Publicis Health
At Publicis Health, we are united around one purpose: to create
a world where people are equipped and motivated to take control of
their health. We transform healthcare marketing and communications
into healthcare engagement. We believe healthcare marketing is
healthcare, fostering healthy conversations, healthy behaviors and
healthy people. With 40 offices and 8 brands across the globe,
Publicis Health’s worldwide staff is comprised of more than 3,000
healthcare professionals who are experts in advertising and
branding, data and analytics, strategic planning, service design,
digital media and technology, science, and medicine. Publicis
Health companies include BBK Worldwide, Digitas Health, Heartbeat,
Insagic, Langland, Payer Sciences, Razorfish Health, and Saatchi
& Saatchi Wellness. For more information, visit us at
www.publicishealth.com. Publicis Health is a subsidiary of Publicis
Groupe [Euronext Paris FR0000130577, CAC 40].
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version on businesswire.com: https://www.businesswire.com/news/home/20240201957072/en/
Kipp Jarecke-Cheng Kekst CNC Corporate Communications, Publicis
Health kipp.cheng@publicishealth.com
publicishealth@kekstcnc.com
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