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:
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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
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APPROVED QzS TO FORM:
Brian A iP erik, City Attorney
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