Publicis: U.S.-Wide Settlement Agreement Reached Concerning Opioid- Related Work by Rosetta, Bringing to a Close Three Years of Discussions

NEW YORK--(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.”

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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].

Kipp Jarecke-Cheng
Kekst CNC
Corporate Communications, Publicis Health
kipp.cheng@publicishealth.com
publicishealth@kekstcnc.com