French advertising giant Publicis will pay $350 million (around €320 million) for its involvement in the opioid crisis. This is the result of an agreement reached on Thursday, February 1, between Publicis Health, the US subsidiary of Publicis, and Letitia James, the New York State Attorney General, who led the negotiations on behalf of US states and territories. This is the first settlement with an advertising agency for its role in the opioid crisis, according to James.
The health crisis was triggered by Purdue Pharma, owned by the Sackler family, who in 1996 launched OxyContin, a highly potent and addictive opioid. The drug, initially intended for patients with terminal cancer, was aggressively marketed to doctors. Along with other opioids, it contributed to an epidemic that resulted in the deaths of approximately 700,000 people over 25 years.
This judge-approved compromise avoids a lawsuit that was pending in Massachusetts. In her press release, James strongly implicates Publicis, describing it as the "first-ever settlement with an advertising company for its role in the opioid crisis." "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," James continued.
Aggressive marketing campaigns
States will receive $343 million while $7 million will be used to reimburse legal costs. Among the biggest beneficiaries, California will receive $34 million, Florida $24 million, Texas $21 million and New York $18.5 million. Publicis must disburse the funds within two months. The agreement expressly prohibits Publicis from accepting any future contracts or commitments related to the marketing or sale of opioids.
According to the prosecutor's release, from 2010 to 2019, Publicis worked with Purdue Pharma to develop marketing campaigns and materials promoting opioids, including OxyContin, Butrans and Hysingla.
"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." the New York Attorney General's office stated, accusing the advertising agency of "conspiring" with consulting firm McKinsey and healthcare chain Practice Fusion Inc. "to push false and deceptive strategies to increase Purdue's opioid sales."
"These aggressive marketing campaigns worked: they resulted in a dramatic rise in opioid prescriptions nationwide, which in turn caused a devastating rise in the prevalence of opioid abuse, addiction, and overdose deaths." The New York Attorney General's office concluded "Publicis and its clients fueled and profited off of the opioid epidemic."
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