Title
Resolution to Approve the City’s Participation in the Settlements of National Prescription Opiate Litigation Against Opioid Manufacturers Alovgen, Amneal, Hikman, Indivior, Mylan, Sun and Zydus, and Against Purdue Pharma and its Owners the Sackler Family
Memorandum
The purpose of this Resolution is to approve the City’s participation in two settlement agreements in the national prescription opioid litigation against: 1) opioid manufacturers Alovgen, Amneal, Hikman, Indivior, Mylan, Sun and Zydus, and 2) Purdue Pharma and its owners the Sackler Family. The resolution authorizes the City Administrator, or his designee, to execute the settlement documents necessary to participate in these two settlements.
Proposed nationwide settlement agreements (“Settlements”) have been reached that would resolve the legal claims of states and local political subdivisions against eight opioids manufacturers: Alovgen, Amneal, Hikman, Indivior, Mylan, Sun and Zydus (“Manufacturers”) and against Purdue Pharma and its owners the Sackler family (Purdue).
The Settlements require the settling Manufacturers to pay hundreds of millions of dollars to abate the opioid epidemic. The Settlements will provide a maximum of approximately $720 million in cash to participating states and subdivisions to remediate and abate the impacts of the opioid crisis. Depending on participation by states and subdivisions, the Settlements against the Manufacturers require:
- Alvogen to immediately pay up to approximately $19 million;
- Amneal to pay up to approximately $74 million over 10 years, and to provide either approximately $177 million of its generic version of the drug Narcan or up to an additional approximately $44 million in cash;
- Apotex to immediately pay up to approximately $65 million;
- Hikma to immediately pay up to approximately $98 million, and to provide either approximately $35 million of its naloxone product or up to an additional approximately $7 million in cash;
- Indivior to pay up to approximately $75 million over five years, a portion of which, at the election of the state, could be paid in the form of Indivior’s branded buprenorphine and/or nalmefene products with a value of up to $140 million.;
- Mylan to pay up to approximately $290 million over nine years;
- Sun to immediately pay up to approximately $32 million; and
- Zydus to immediately pay up to approximately $15 million.
In addition, a settlement has been reached with Purdue Pharma and its owners the Sackler family. By participating, the City will receive direct payments as part of a nationwide $7.4 billion agreement resolving litigation against Purdue and its owners, the Sackler family, for their role in creating and worsening the opioid crisis. Michigan governments stand to receive up to $154 million from Purdue over the next 15 years, which is dependent, in part, on the participation of local governments.
The Settlements also contain injunctive relief governing opioid marketing, sale, distribution, and/or distribution practices and require the Manufacturers to implement safeguards to prevent diversion of prescription opioids.
Under all of the national settlements, at least 85% of the funds going directly to participating states and subdivisions must be used for abatement of the opioid epidemic, with the overwhelming bulk of the proceeds restricted to funding future abatement efforts by state and local governments.
Staff
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Proposed nationwide settlement agreements (“Settlements”) have now been reached that would resolve the legal claims of states and local political subdivisions against eight opioids manufacturers, Alovgen, Amneal, Hikman, Indivior, Mylan, Sun and Zydus, and against Purdue Pharma and its owners the Sackler family;
Whereas, The City is an eligible subdivision of the State of Michigan to participate in the Settlements against Alovgen, Amneal, Hikman, Indivior, Mylan, Sun and Zydus (“Manufacturers”), and against Purdue Pharma (“Purdue”) and the Sackler family;
Whereas, Depending on participation by states and subdivisions, the Settlements against the Manufacturers require:
- Alvogen to immediately pay up to approximately $19 million;
- Amneal to pay up to approximately $74 million over 10 years, and to provide either approximately $177 million of its generic version of the drug Narcan or up to an additional approximately $44 million in cash;
- Apotex to immediately pay up to approximately $65 million;
- Hikma to immediately pay up to approximately $98 million, and to provide either approximately $35 million of its naloxone product or up to an additional approximately $7 million in cash;
- Indivior to pay up to approximately $75 million over five years, a portion of which, at the election of the state, could be paid in the form of Indivior’s branded buprenorphine and/or nalmefene products with a value of up to $140 million.;
- Mylan to pay up to approximately $290 million over nine years;
- Sun to immediately pay up to approximately $32 million; and
- Zydus to immediately pay up to approximately $15 million.
Whereas, The Settlements also contain injunctive relief governing opioid marketing, sale, distribution, and/or distribution practices and require the Manufacturers to implement safeguards to prevent diversion of prescription opioids;
Whereas, the City is eligible to receive direct payments as part of a nationwide $7.4 billion agreement resolving litigation against Purdue and its owners, the Sackler family, for their role in creating and worsening the opioid crisis;
Whereas, According the Michigan Department of Attorney General, under the Sacklers’ ownership, Purdue made and aggressively marketed opioid products for decades, fueling the largest drug crisis in the nation’s history. The settlement ends the Sacklers’ control of Purdue and their ability to sell opioids in the United States. Communities across the country will directly receive funds over the next 15 years to support addiction treatment, prevention, and recovery. This settlement in principle is the nation’s largest settlement to date with the individuals responsible for the opioid crisis. Michigan’s state and local governments will receive as much as $154 million from this settlement over the next 15 years;
Whereas, The Plaintiffs Executive Committee and the Michigan Attorney General are encouraging all municipalities to join in the Settlements;
Whereas, Opting into the Settlements increases the funds received by the local agencies and the State;
Whereas, The deadline for entering the Settlement against the Manufacturers is October 8, 2025;
Whereas, The deadline for entering the Settlement against Purdue Pharma and the Sackler family is September 30, 2025; and
Whereas, Taking no action prior to the deadlines effectively means the City would opt out of the Settlements;
RESOLVED, That City Council approve the City’s participation in the settlements of the national prescription opiate litigation against eight opioids manufacturers: Alovgen, Amneal, Hikman, Indivior, Mylan, Sun and Zydus, and against Purdue Pharma and the Sackler family;
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.