Title
Resolution Approving of the City of Hampton’s Participation in the Proposed Settlement of Opioid-Related Claims, including those against Mckesson, Cardinal Health, Amerisourcebergen, Janssen, and their Related Corporate Entities, and directing the City Manager to execute the documents necessary to effectuate the City of Hampton’s Participation in these and Future Settlements
Purpose
PURPOSE/BACKGROUND:
Over the course of several months the Commonwealth of Virginia, as well as many of its localities, have been engaged in litigation against various supply chain defendants involved in the manufacture, sale and distribution of pharmaceutical opioid products. These lawsuits sought recovery of public funds expended and monies to be expended in the fight against opioid addiction and its many outgrowths. This litigation has been pursued by many states and localities within our country. These claims against certain defendants are starting to come to a close through either settlements or bankruptcy plans, which means funds recovered via the litigation will start to flow in the coming months. In particular, a settlement agreement is currently pending with McKesson, Cardinal Health, Americsourcebergen, Janssen, and their related entities. The funds provided to each state will be dependent on the number of localities who participate in settlement agreements. Once funds are allocated to the Commonwealth of Virginia, the Commonwealth will in turn allocate some of those funds to individual localities. In order to receive funds, the City of Hampton must both participate in settlement agreements and enter into a Memorandum of Understanding ("MOU") with the Commonwealth of Virginia. The MOU is the culmination of months of negotiation between representatives of Virginia local governments and the Office of the Attorney General ("OAG") on how best to manage and allocate any settlement funds received through the ongoing parallel litigation efforts of state and local gov...
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