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Wednesday, November 02, 2022

Legal Fiction And PR 

CVS Health has agreed to pay $5 billion over 10 years to settle claims against it for opioid abuse.  "The company did not admit liability or wrongdoing."  This curious legal fiction flies in the face of reality.  If a company has done nothing wrong, why wouldn't it fight it out in court?  Certainly, lawyers' costs won't add up to $5 billion.  What is being said here is that chances are good that CVS would lose in court cases and pay far more than $5 billion.  It is an admission of legal weakness, which in turn is an admission of some kind of guilt.  For reasons of liability, CVS can't admit it was in the wrong, so as is typical in these cases, it takes cover.  From a PR perspective, it doesn't work.  People still think the company is guilty and its reputation is harmed.


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