Title
Consider/Discuss/Act on a Resolution Authorizing the City of McKinney to Participate in the Proposed Opioids Settlement Agreements regarding the State of Texas’ and Other Governmental Entities’ Litigation against Teva, Allergan, CVS, Walmart and Walgreens for their Respective Roles in the National Opioid Crisis and Authorizing the City Manager to Execute Documents Related thereto
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: April 4, 2023
DEPARTMENT: City Manager’s Office
CONTACT: Paul G. Grimes, City Manager
RECOMMENDED CITY COUNCIL ACTION: Staff recommends approval of a resolution authorizing the City Manager to execute on behalf of the City settlement documentation relative to the State of Texas’ and other governmental entities’ litigation against Allergan, CVS, Walmart and Walgreens for the marketing, sale and dispensing of opioids.
ITEM SUMMARY: At the present time, the amount of funds to be received by the City is unknown.
BACKGROUND INFORMATION: Several years ago, the State of Texas, along with a broad coalition of states and political subdivisions from across the country, sued three (3) major opioid distributors - McKesson, Cardinal Health and Amerisource Bergen-along with an opioid manufacturer, Johnson & Johnson - for their role in the national opioid crisis. Those manufacturers entered into a settlement agreement with the coalition of states and over governmental entities and upon the request and urging of the Office of the Texas Attorney General, most Texas local governments participated in the settlement. The City opted to participate in September 2021, with the funds required to be utilized for opioid remediation purposes.
Similarly, the State of Texas and other coalition members have settled their cases against two pharmaceutical manufacturers, Teva and Allergan (“Manufacturers”), and three pharmacies, CVS, Walgreens, and Walmart (“Pharmacies”) relative to their respective roles in manufacturing, distributing, marketing, sale and dispensing of opioids, in the following amounts: Allergan-$135 million; CVS-$304 million; Walmart-$170 million; and Walgreens-$340 million. Again, the Office of the Attorney General has strongly encouraged Texas political subdivisions to participate in the settlement, with settlement amounts for each political subdivision yet undetermined. Settlement amounts will be based upon the number of participating governmental entities, and proceeds will be spent on additional opioid remediation. The Attorney General’s Office has indicated that settlement discussions are proceeding against numerous other defendants in the opioid industry. Detailed information about the State of Texas’ opioid litigation efforts may be found on the Texas Attorney General’s website.
FINANCIAL SUMMARY: N/A
BOARD OR COMMISSION RECOMMENDATION: N/A