Fieldfisher secures favourable court ruling in landmark litigation case

Following an audit by the public sector body Urssaf Île-de-France, the medical device company was ordered to pay significant social security contributions and surcharges amounting to €387,863. These contributions, which are required in France and aim to help regulate and control the promotion of pharmaceutical products, are calculated using the total amount spent on advertising, including the salaries of the territory managers and salespeople. 

Following the audit, the company was ordered to pay the large amount, which was determined, in part, by the total salary of its territory managers.  

The Fieldfisher team, led by partner Olivier Lantres and supported by partner Cord Willhoeft, counsel Sébastien Pradeau and associate Alice Evrard, represented the client in challenging Urssaf Île-de-France, arguing that only 70 percent of the territory managers' time was spent on advertising, fully evidenced, and therefore the tax should be based on that.   

In March 2025, the court ruled in the medical device company's favour and ordered the recalculation based on a promotional activity ratio of 70 percent, which means that Urssaf Île-de-France is required to reimburse the excess contributions paid by the client.  

Olivier Lantres commented: "It's not easy to successfully overturn a decision like this, and although we have experience in similar cases, this is a particularly important ruling as the outcome affects how life science businesses calculate their promotional taxes. Working closely with clients and colleagues across multiple different offices in Europe, our experience and knowledge of the sector meant we were able to confidently challenge Urssaf Île-de-France and ensure our client understood exactly what their promotional tax bill should be."  

The judgment addressed critical elements including the application of promotional contribution bases, and the role of benefits in kind in contributions, aligning with the French Social Security Code requirements. This judgment represents a significant legal victory for the medical device company, reinforcing Fieldfisher's commitment to delivering robust legal representation and favorable outcomes for clients in complex litigation processes.  

With a team of cross-departmental experts based across all offices, Fieldfisher's Life Sciences team provides seamless, sector-relevant legal support. The firm's ongoing work and active participation in leading industry bodies, such as ABHI, BIA and EUCOPE and support of their respective member companies, means that they are more than just a legal services provider and are an imbedded part of the industry's ecosystem. This landmark ruling is the latest in a number of successful client representations including securing key regulatory victories for Philagro France and Suterra in market access disputes and guiding Myeloma UK through NICE U-turn, securing vital treatment approval.