Title
Resolution to Approve the City's Participation in the Settlement of the National Prescription Opiate Litigation Against Kroger Co.
Memorandum
The purpose of this Resolution is to approve the City's participation in the settlement of the national prescription opioid litigation against Kroger Co. and to authorize the City Administrator, or his designee, to execute the settlement documents necessary to participate in the settlement.
In 2021, nationwide settlements were reached to resolve all opioids litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors-McKesson, Cardinal Health, and AmerisourceBergen ("Distributors")-and against manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson. These "2021 National Settlements" have been finalized. The City participated in these settlements and has begun receiving payments.
In late 2022 and 2023, the State and the City of Ann Arbor participated in the national settlement against three pharmacy chains-CVS, Walgreens, and Walmart-and two additional manufacturers-Allergan and Teva. The City has begun receiving payments from these settlements as well.
A proposed nationwide settlement agreement ("Settlement") has now been reached that would resolve the legal claims of states and local political subdivisions against regional supermarket pharmacy Kroger Co. related to alleged misconduct related to opioids. The Settlement requires Kroger Co. to pay over a billion dollars to abate the opioid epidemic. Of this amount, approximately $1.2 billion will be used by participating states and subdivisions to remediate and abate the impacts of the opioid crisis. Depending on participation by states and subdivisions, the Settlement requires payments over eleven years after its effective date. The Settlement also contains injunctive relief governing opioid dispensing practices and requires Kroger Co. to implement safeguards to prevent diversion ...
Click here for full text