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HomeMy WebLinkAboutRes 2025-08-1801 Approve Participation in the Opioid Litigation Group SettlementRESOLUTION NO. Q as 5 - ©$ - I So I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, APPROVING PARTICIPATION IN GROUP SETTLEMENT OF LITIGATION WITH OPIOID MANUFACTURERS, DISTRIBUTORS, AND RELATED ENTITIES, INCLUDING PURDUE PHARMA L.P. AND THE SACKLER FAMILY; AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE DOCUMENTS NECESSARY FOR PARTICIPATION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Anna, Texas ("City Council") obtained information indicating that certain drug companies, including without limitation Purdue Pharma L.P., Purdue Pharma Inc., Purdue Transdermal Technologies, L.P., and assorted other corporate affiliates, parents, subsidiaries, and such other defendants as may be added to the litigation (collectively, "Purdue Defendants") have engaged in fraudulent and/or reckless marketing and/or distribution of opioids that have resulted in addictions and overdoses on a nationwide basis; and WHEREAS, various Purdue Defendants have sought bankruptcy protection to prevent, reduce, or delay the fulfillment of their obligations to remedy the harms of their fraudulent, reckless, and negligent handling of opioids, including but not limited to In re: Purdue Pharma L.P., et al., Case No. 19-23649 (SHL) in the United States Bankruptcy Court, Southern District of New York, which has recently distributed notice of its Thirteenth Amended Plan for the Chapter 11 Reorganization of Purdue Pharma L.P. and its Affiliated Debtors, which includes in part a Government Entity & Shareholder Direct Settlement Agreement, through which claimants in the State of Texas are to be distributed over $280 million dollars in settlement funds, and which will replace or supersede previously proposed or approved settlements in the Purdue/Sackler suits as to the Purdue Defendants and the Sackler Family Members (Raymond R. Sackler, Mortimer D. Sackler, and their spouses and descendants, "Sackler(s)")(generally "Purdue Direct Settlement", Ref. No. CL- 170496); WHEREAS, the Texas Attorney General has notified Texas subdivisions that in order to receive distributions from Purdue Direct Settlement, it must affirmatively "opt -in", agree to the necessary terms, and submit paperwork on or before September 30, 2025, in similar manner as with past settlements, such as that with Endo Health Solutions, Inc., Endo Pharmaceuticals, Inc., Endo International PLC, Par Pharmaceutical, Inc., and their affiliates ("Endo/Par Settlement"); WHEREAS, new national opioid settlements have been reached with Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (Ref. No. CL-1772432), with an opt -in deadline of October 8, 2025; Page 1 of 3 WHEREAS, these actions, conduct and misconduct have resulted in financial costs to the City, and burdens to the health and general welfare of the City's residents; and WHEREAS, it would be burdensome and costly for the City and other Texas municipalities to pursue independent lawsuits against the bad actors who contributed to the opioid crisis, necessitating reliance on class action lawsuits such as In re: Texas Opioid Litigation, MDL No. 2018-63857; and WHEREAS, on May 13, 2020, the State of Texas, through the Office of the Attorney General, entered into an agreement to collectively settle claims of Texas governmental units against entities connected to the opioid crisis, and for that purpose the Attorney General promulgated the Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (hereafter, the Texas Term Sheet) approving the allocation of any and all opioid settlement funds within the State of Texas, through which participating cities can claim portions of the settlements reached; WHEREAS, on or about February 7, 2022, the State of Texas, through the Office of the Attorney General, notified the City that it is eligible to participate in settlement of other, similar litigation with several opioid manufacturers, distributors, and affiliates, including Teva Pharmaceutical Industries, Lt., Teva Pharmaceuticals USA, Inc., Cephalon, Inc., Atavais Pharma, Inc., and Watson Laboratories, Inc. (collectively "Teva Settlement") under the terms established under the Texas Term Sheet, which follow settlements with Johnson & Johnson/Janssen, Cardinal, Amerisource Bergen, McKesson, Teva, Allergan, CVS, Walgreens, Walmart, and Kroger, and the City Council has approved participation and the terms for allocation of any and all opioid settlement funds within the State of Texas; WHEREAS, the City Council of Anna, Texas, has previously adopted and approved the Texas Term Sheet in its entirety, finding it in the best interests of the City to utilize its procedures rather than separately pursue claims; and WHEREAS, unless the City's legal counsel makes alternate recommendations with respect to a specific lawsuit or set of opioid defendants, the City Council is comfortable relying on the recommendations of the Texas Attorney General with respect to participation in the Purdue Direct Settlement, Teva and Endo/Par Settlements, and all other related actions without individualized consideration, such that it seeks to "opt -in" to all opioid-related lawsuits as it is eligible to participate in; WHEREAS, the City Council has investigated the matter and found it is in the best interests of the City and its residents to approve the City's participation in all opioid-crisis-related settlements on the recommendations of the Texas Attorney General, including the release of any City claims subject to the scope of the settlement(s), and to authorize the Mayor and City Manager to execute Page 2 of 3 the agreements, releases, and any other documents or instruments necessary for the City of Anna to participate and receive distributions of proceeds; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anna, Texas, that the City Council: 1. Authorizes the City of Anna to participate in the various settlement agreements for the Purdue Defendants, Endo/Par Settlement, Teva Settlement, and other litigation relating to the opioid crisis; and 2. Finds as follows: a. There is a substantial need for repayment of opioid-related expenditures and payment to abate opioid-related harms in and about the City of Anna; and b. The City Council supports the Purdue, Endo/Par, Teva, and other opioid settlement efforts in their entirety and has accepted the allocation method for opioid settlement proceeds as set forth in the Texas Term Sheet. The City Manager and Mayor, in consultation with the City Attorney and subject to approval of legal form, are further authorized on behalf of the City to execute the related paperwork, including Texas Subdivision and Special District Election and Release Form and to execute any and all additional documents and instruments necessary for the City of Anna to participate in the settlements. C. Ratification or approval by the City Council of the Mayor and City Manager's execution of such documents for opioid settlement participation in accordance with the recommendations of the Texas Attorney General shall not be required unless the City Attorney recommends individualized consideration. In such cases, prior to the associated deadlines, the City Attorney shall request the item be placed on the agenda for City Council deliberation regarding whether to opt -in a specific opioid-related settlement. APPROVED, ADOPTED AND EFFECTIVE THIS I a- DAY OF AUGUST 2025. Page 3 of 3