Recently, two settlements were announced as part of the ongoing opioid litigation throughout the United States: a $350 million settlement with Publicis Health, a subsidiary of Publicis Groupe, and a $150 million settlement with Hikma Pharmaceuticals.
Publicis Health Settlement
The Publicis settlement resolves allegations by all states and territories in the United States, that the company helped Purdue Pharma create marketing strategies to boost sales of OxyContin, its prescription opioid. The settlement stemmed from a 2021 lawsuit by the State of Massachusetts, which alleged that Publicis earned more than $50 million in working with Purdue, helping the company to get doctors to prescribe its opioids to more patients, for longer periods of time, at higher doses.
Massachusetts alleged that Publicis came up with marketing strategies to combat prescribers’ hesitancy to prescribe OxyContin, including materials used to train and assist Purdue sales reps in detailing doctors, and told Purdue how to target the most dangerous high prescribers. According to the lawsuit, the company was also instrumental in Purdue’s decision to market OxyContin to providers through patients’ electronic health records.
In addition to the $350 million in settlement funds, the settlement also requires that Publicis no longer take on clients to market, promote, or advertise opioids or opioid-based controlled substances.
“For years, Publicis Health’s marketing schemes helped fuel the nationwide opioid crisis, which has shattered some of our most vulnerable communities, while creating significant financial strain on our state systems,” said Massachusetts Attorney General Andrea Joy Campbell. “I am proud of my team’s national leadership in securing this settlement, which will not only bolster accountability and transparency for this ongoing crisis but will also provide millions of dollars for much needed treatment and services to support individuals and families across Massachusetts.”
Publicis did not admit to any wrongdoing as part of the settlement and noted that it will defend itself against any further litigation that is not resolved by the agreement. “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.” Publicis said in a statement.
Hikma Pharmaceuticals Settlement
Hikma Pharmaceuticals reached a separate settlement in principle – to the tune of $150 million – for its alleged failure to monitor suspicious orders of opioids from potentially illegal distributors from 2006 to 2021.
Hikma has faced more than 900 lawsuits as a result of the opioid epidemic and notes that this settlement resolves “the vast majority” of those lawsuits. The $150 million settlement is split between $115 million in cash and $35 million worth of naloxone. In addition to the financial terms, the final settlement is contingent upon further agreement on “critical business practice changes” and the final terms of the deal will be determined once state and local governments all sign on.
“The opioid crisis continues to devastate individuals, families, and communities,” stated Colorado Attorney General Phil Weiser. “This settlement in principle marks another step to hold those accountable for this epidemic and will bring funds to Colorado to provide support for treatment, recovery, and prevention services.”
“Hikma was part of an industry that flooded the country with dangerous opioids, profiting off the products that have caused our current national public health crisis,” said New York Attorney General Letitia James. “While this settlement won’t fully repair the devastation opioids have caused, the funds we secured will help combat the crisis of addictions and overdoses, and help people across the country get the treatment they need.”
Part of a Larger Picture
These settlements add to the more than $50 billion that various drug manufacturers, distributors, pharmacy operators, and consultants have agreed to pay to resolve lawsuits surrounding their roles in the opioid crisis.