Title
Resolution to Approve the City's Participation in the Settlements of the National Prescription Opiate Litigation Against Allergan, Teva, CVS, and Walmart
Memorandum
The purpose of this Resolution is to approve the City's participation in the settlements of the national prescription opioid litigation against Allergan, Teva, CVS, and Walmart, and to authorize the City Administrator to execute the settlement documents necessary to participate in the historic 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 (collectively, "J&J"). These "2021 National Settlements" have been finalized. The City participated in these settlements and has begun receiving payments.
In late 2022, agreements were announced with three pharmacy chains-CVS, Walgreens, and Walmart-and two additional manufacturers-Allergan and Teva. In January 2023, each of those pharmacy chains and manufacturers confirmed that a sufficient number of states had agreed to the settlements to move forward. Michigan has chosen not to participate in the Walgreens Settlement. As with the 2021 National Settlements, states and local governments that want to participate in the 2022 National Settlements now will have the opportunity to "opt in." The greater the level of subdivision participation, the more funds will ultimately be paid out for abatement.
Under both the 2021 and 2022 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.
The 2021 and 2022 National Settlements are the culmi...
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