Global advertising company Publicis Groupe has paid $US343 million to settle claims one of its agencies had helped fuel the opioid epidemic in the US by marketing OxyContin.
The payout by Publicis Health settles legal action started three years ago by a string of American states over work for Purdue Pharma by now defunct agency Rosetta.
The lawsuit, alleging "predatory and deceptive marketing strategies," was seen as unprecedented, with a marketing group the focus of alleged liability for a client’s product.
The attorneys general of 50 states alleged marketing campaigns were used to get medical doctors to push opioids to patients.
Publicis was alleged to have implemented Purdue Pharma’s predatory “Evolve to Excellence” scheme, developed by McKinsey, which targeted doctors who prescribed the most OxyContin and flooded them with sales calls and marketing.
New York attorney general Letitia James says Publicis, under the settlement, is also required to release hundreds of thousands of internal documents detailing its work for Purdue and other opioid manufacturers, as well as communications with consultants such as McKinsey and Practice Fusion.
James says the deal prohibits Publicis from accepting any future contracts or engagements related to the marketing or sale of opioids.
Publicis says the work carried out on behalf of pharmaceutical companies was always fully compliant with the law. Nothing it did was deceptive.
The France-based company says the full settlement amount should quickly and directly contribute to the states' opioid relief effort.
Publicis said it was acting as a “good citizen” and that the settlement was 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 company said.
Rosetta, a small agency closed for ten years, was already working with pharmaceutical companies when it was acquired by Publicis in 2011.
The marketing work was aimed at healthcare providers and not consumers, using communication tools and terminologies approved by the US Food and Drug Administration.
Publicis says Rosetta's role was limited to carrying out standard services that an advertising agency offers to its clients, for products which are still prescribed to patients, covered by the main private insurers, Medicare, and authorised by state drug authorities.
"We recognise the broader context in which this legally compliant work was conducted. Addressing opioids in the United States requires collaboration between industries, lawmakers, and communities, and we are committed to doing so,” Publicis Health said in a statement.
"That's why we worked to reach this agreement and reaffirm our long-standing commitment to reject any future opioid-related projects."
Publicis will end up paying $US213 million of the $343 million settlement, after being compensated by insurers for $130 million.
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