Title
Resolution to Approve the City's Participation in the Settlement of the National Prescription Opiate Litigation Against Walgreens
Memorandum
The purpose of this Resolution is to approve the City's participation in the settlement of the national prescription opioid litigation against Walgreens 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 (collectively, "J&J"). These "2021 National Settlements" have been finalized. The City participated in these settlements and has begun receiving payments.
In late 2022, additional settlement 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. The State of Michigan did not participate in the national Walgreens settlement at that time because the State had not yet settled its claim against Walgreens. The State, and the City of Ann Arbor, participated in the national settlements against CVS, Walmart, Allergan and Teva.
In June of 2023, the State settled its claim against Walgreens and is now joining the national settlement. The City of Ann Arbor may now choose to participate in the Walgreens national settlement and the conservative estimate of Ann Arbor City's projected amount for the Walgreens national settlement is $194,068.33. Current information indicates this amount will be paid in installments over fifteen (15) years.
Under all of the national settl...
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