Report to Mayor and City Council
Tuesday, August 06, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF FORMS, AGREEMENTS AND RESOLUTION NO. 24-079 ALLOWING THE CITY OF CARSON TO PARTICIPATE IN ADDITIONAL NATIONAL OPIOID SETTLEMENT WITH KROGER CO. (CITY COUNCIL)
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I. SUMMARY
In 2021, the City entered into settlement agreements with McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc. and Ortho-McNeil-Janssen Pharmaceuticals, Inc., who are manufacturers and distributors of opioids ("2021 Settling Defendants"). The 2021 settlement agreements concerned litigation (the City was not a party to this litigation) by various States, cities, and counties relating to the 2021 Settling Defendants' manufacture and distribution of opioids and, in particular, the impact of such activities upon the national opioid epidemic. The 2021 Settlement Agreements required that a "critical mass" of public agencies participate in order for them to become effective, which was achieved in 2022.
In 2023, the City Council approved City's participation in an opioid settlement with additional manufacturers and retailers of opioids named as additional defendants in litigation aimed at addressing the opioids crisis including Teva, Allergan, Walmart, Walgreens, and CVS ("2023 Settling Defendants"). The terms of the 2023 Settlement Agreements are similar to the 2021 Settlement Agreements, which includes the requirement that a critical mass of participation be achieved, provides for a broad release of the 2023 Settling Defendants from liability relating to opioids, and, further, direct or indirect payment of settlement funds to the various local agencies agreeing to participate. The City Council directed settlement payments under the 2021 and 2023 settlements to be made to the County with the understanding that City may change its election so that it receives direct payment at any time.
Now, a new national settlement has b...
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