Title
Resolution Approving the City of Hampton's Participation in the Proposed Direct Settlement of Opioid-Related Claims Against the Sackler Family, and Directing the City Manager to Execute the Documents Necessary to Effectuate the City of Hampton's Participation in the Settlement
Purpose
PURPOSE/BACKGROUND:
On November 10, 2021, the City Council approved the City's participation in a Memorandum of Understanding governing the statewide distribution of settlement funds relating to ongoing litigation by the state with several companies involved in the manufacture and distribution of opioids. At the time, the only settlements which had been reached were with distributors McKesson, Cardinal Health and AmerisourceBergen, and manufacturer Janssen Pharmaceuticals. On March 8, 2023, City Council approved additional settlements with manufacturers Teva, Allergan, and retailers Walmart, Walgreens and CVS, and on July 10, 2024, City Council approved an additional settlement with Kroger and its related corporate entities. Settlement has now been reached with the Sackler Family. This resolution would approved the City's participation in this latest settlement.
Recommendation:
Rec
Approve the resolution.
Body
WHEREAS, the opioid epidemic that has cost thousands of human lives across the country also impacts the Commonwealth of Virginia and its counties and cities, including the City of Hampton, by adversely impacting the delivery of emergency medical, law enforcement, criminal justice, mental health and substance abuse services, and other services by the City of Hampton’s various departments and agencies; and
WHEREAS, the Commonwealth of Virginia and its counties and cities, including the City of Hampton, have been required and will continue to be required to allocate substantial taxpayer dollars, resources, staff energy and time to address the damage the opioid epidemic has caused and continues to cause the citizens of the Commonwealth and the City of Hampton; and
WHEREAS, a settlement proposal has been negotiated that will cause the Sackler family, the owners of the Purdue Pharma family of companies, to pay an aggregate of $6.5 billion dollars nationwide to resolve opioid-related claims against them; and
WHEREAS, the City of Hampton has approved and adopted the Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding (the “Virginia MOU”), and affirms that this pending settlement with the Sackler family shall be considered a “Settlement” that is subject to the Virginia MOU, and shall be administered and allocated in the same manner as the opioid settlements entered into previously with opioid distributors McKesson, Cardinal Health, and AmerisourceBergen, opioid manufacturers Janssen Pharmaceuticals, Teva Pharmaceuticals, and Allergan, and retail pharmacy chains CVS, Walgreens, Walmart, and Kroger; and
WHEREAS, the City’s participation in this additional settlement will result in additional funds being provided to reimburse the City for its costs associated with the opioid epidemic;
NOW, THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE CITY OF HAMPTON, VIRGINIA that it approves of the City of Hampton’s participation in the proposed settlement of opioid-related claims against the Sackler family, and directs the City Manager to execute the documents necessary to effectuate the City of Hampton’s participation in the settlement, including the required release of claims against the Sackler family.