I work for a digital agency, and my team (that I lead) is set to inherit a long term client.

Trouble is, a member of my team expressed a moral objection to working for this client and now that I have looked into it I fully agree with the objection. 

What's the best way of discussing this without singling out the team member that raised the original objection? I already started the conversation about allowing this member to not work on the project, but now that I have done my own research I am increasingly uncomfortable working for them too. (put it this way I would not take a job at this clients company)

I want to be realistic and accept that as a digital agency we can't be too picky with clients. But I do firmly believe we shouldn't associate our brand with theirs.

It's a shame because the actual project is nice to work on, the client is friendly and there are decent challenges, from a business point of view they don't quibble about invoices and all that. But from what I can see the project does touch on an area where they have had legal difficulties and is actually part of recommending a product that is the subject of many law suits. 

Also, regardless of the outcome I need to be able to communicate to the team member the decision that has been made. The team member has such a strong objection that they would seek other employment if we plan to work with them long term. I too am not sure how long I would feel OK working on this client. I can be realistic for a short term project but if I was on this project in 6 months, knowing the history of their company, I too would probably feel the need to seek other employment.

I want to get this all across without sounding to dramatic, but also express the seriousness of the objection to this client, I have several articles prepared on their spotty history but beyond that I'm not sure what to prepare. Any advice?