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HomeMy WebLinkAboutResolution 2021-072POOR RESOLUTION NO. 2021-072 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING CITY MANAGER TO EXECUTE PARTICIPATION AGREEMENTS REGARDING THE SETTLEMENT OF THE NATIONAL OPIOID LITIGATION WHEREAS, a national multi -district lawsuit regarding the opioid crisis is being adjudicated in federal court by Judge Dan Aaron Polster in the Northern District of Ohio and is referred to as MDL 2804 Opiate Litigation; and WHEREAS, on July 21, 2021 the National Prescription Opiate Litigation Multi -District Litigation (MDL) Plaintiffs' Executive Committee, several State Attorneys General, and four major defendants announced agreement on terms of a proposed nationwide settlements to resolve all Opioids litigation brought by various states and local political subdivisions against the three largest pharmaceutical distributors: McKesson, Cardinal Health and AmerisourceBergen ("Distributors"), and manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, "J&J"); and WHEREAS, the settlement requires the Distributors to pay up to $21 billion and Janssen to pay up to $5 billion, and that roughly $2.6 billion of this settlement is to be directed to the State of California and its subdivisions, subject to the State Attorney General and political subdivisions OMO reaching an allocation agreement to determine how to apportion and distribute the settlement funds directed to California; and WHEREAS, In October 2021, an allocation agreement was reached, whereby 70% of the total settlement funds sent to California will be allocated to the political subdivisions of the State who elect to participate in the settlement and, consequently, release their own potential claims against the defendants; and WHEREAS, in order for the City of Atascadero to participate, the City must elect to participate by January 2, 2022, by completing the participation agreements; and WHEREAS, in participating, if the entity elects to participate and wants to receive direct payments, it must notify the Settlement Distributor Administrator, otherwise, the funds will be directed to the County. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero that the foregoing recitals are true and correct, and they are hereby incorporated by reference into this Resolution. BE IT FURTHER RESOLVED, that the City Council of the City of Atascadero hereby resolves as follows: .p 1. Authorize the City Manager to execute the Settlement Agreements and any other necessary documents, in a form approved by the City Attorney, required to join the Settlement Agreements, and City of Atascadero Resolution No. 2021-072 Page 2 of 2 2. Authorize the City Manager to take all necessary actions to join in the settlements in the National Opioid Litigation and to release any potential claims against the identified defendants, Distributors and J&J and accept payment based on the terms and conditions set forth in the Settlement Agreements. PASSED AND ADOPTED at a regular meeting of the City Council held on the 23rd day of November, 2021. On motion by Council Member Bourbeau and seconded by Council Member Funk, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: Council Members Bourbeau, Funk, Newsom and Mayor Moreno NOES: None ABSENT: Council Member Dariz ABSTAIN: None CITY OF ATASCADERO Heather Moreno, Mayor ara I .` ist i erk APPROVED QzS TO FORM: Brian A iP erik, City Attorney n t