French advertising group Publicis reaches $343M U.S.-wide opioid settlement

Publicis (OTCQX:PUBGY) said on Thursday it had reached a $343 million U.S.-wide settlement related to opioid-related work by its former advertising agency Rosetta, closing almost three years of discussion.

Publicis, the former owner of Rosetta, had shuttered the agency 10 years ago.

The French advertising group said it had reached a resolution with all 50 State Attorneys General, the District of Columbia, and certain U.S. Territories.

Following the payment of $343 million to the States, PUBGY said it had been compensated by its insurers for $130 million. Consequently, it had 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.

According to Publicis, the settlement has no impact on its 2023 guidance.

The company added that the settlement “is in no way an admission of wrongdoing or liability.”