Title
Resolution to Approve the City’s Participation in the Settlement of National Prescription Opiate Litigation Against Opioid Distributors/Dispenser Defendants: Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (Six Remnant Defendants)
Memorandum
The purpose of this Resolution is to approve the City’s participation in the settlement agreement in the new national prescription opioid litigation against six regional distributors/dispenser defendants (Remnant Defendants Settlement): Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (Six Remnant Defendants). There is one settlement agreement covering the combined settlement with the Six Remnant Defendants.
If effectuated, the proposed Remnant Defendants Settlement will result in the Six Remnant Defendants paying a combined $97,625,000.00 in cash for purposes of abating the opioid epidemic. An Eligible Entity’s participation in the Remnant Defendants Settlement, the Settlement will result in a one-time settlement payment to each Eligible Entity. The City has been deemed an Eligible Entity. The Settlement funds must be used for the Core Strategies and Approved Uses set forth in Exhibit D of the Remnant Defendant Settlement Agreement.
The Remnant Defendants Settlement does not include State Attorneys General or any amount allocated to a State. Rather, this Settlement will be distributed only and directly to any Eligible Entity that participates by signing and returning the Combined Subdivision Participation and Release Form by the deadline.
The Settlement requires that each Eligible Entity take affirmative steps to “opt in” to the Settlement. The participation rate will be used to determine whether participation for each Remnant Defendant is sufficient to move forward. If the Settlement moves forward, the City’s participation will become effective as to that Remnant Defendant. If the settlement as to any Remnant Defendant does not move forward, the City’s participation as to that Remnant Defendant will not become effective.
The resolution authorizes the City Administrator, or his designee, to execute the settlement documents necessary to participate in the Remnant Defendants Settlement. All required documentation must be signed and returned on or before Monday, May 4, 2026.
Budget/Fiscal Impact: There is no cost to the City. The purpose of this resolution is to enable the City to receive settlement funds.
Staff
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, A new settlement agreement has now been reached that would resolve the legal claims against six opioids distributors/dispensers: Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (Six Remnant Defendants);
Whereas, The City is an eligible subdivision to participate in the settlement against the Six Remnant Defendants;
Whereas, If effectuated, the proposed settlement will result in the Six Remnant Defendants paying to all eligible entities a combined total of $97,625,000.00 in cash for purposes of abating the opioid epidemic.
Whereas, The deadline for entering the settlement against the Six Remnant Defendants is May 4, 2026; and
Whereas, Taking no action prior to the deadline effectively means the City would opt out of the settlement;
RESOLVED, That City Council approve the City’s participation in the settlement of the national prescription opiate litigation against six opioids distributors/dispenser defendants: Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics);
RESOLVED, That the City Administrator, or his designee, be authorized and directed to execute all necessary settlement documents; and
RESOLVED, That the City Administrator and City Attorney be authorized to take all necessary actions to implement this resolution.