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 Six (6) Regional Distributors/Dispenser Defendants Including Associated Pharmacies, Inc. (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (collectively, the “Six Remnant Defendants”) 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 21, 2026
DEPARTMENT: City Manager’s Office
CONTACT: Paul 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 the Six Remnant Defendants for the marketing, sale, and distribution 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 companies 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.
Similarly, the State of Texas and other coalition members 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: Allergan; CVS; Walmart; and Walgreens. The State of Texas and other coalition members also settled opioid cases against Kroger. In 2025 the State of Texas and other coalition members settled their cases against Purdue Pharma, L.P. and its Affiliated Debtors. The State of Texas and other collation members also settled their cases against the following Manufacturers of opioids in 2025: Alvogen; Amneal; Apotex; Hikma; Indivior; Mylan; and Zydus. The City has opted to participate in all of the foregoing identified settlements, with the funds required to be utilized for opioid remediation purposes.
The Office of the Attorney General has strongly encouraged Texas political subdivisions to participate in the settlement for the following reasons:
“First, the amounts to be paid under the Settlement, while insufficient to abate the epidemic fully, will contribute to allowing Texas and its local governments to commence with meaningful change designed to curb opioid addiction, overdose, and death, following on the Distributors and Johnson & Johnson/Janssen settlements from 2021, the Teva and Endo settlements from 2022, the Mallinckrodt bankruptcy settlement in 2023, the Allergan, CVS, Walmart, and Walgreens settlements from 2023, and the 2024 Kroger settlement;
Second, time is of the essence. The opioid epidemic continues to devastate communities around the country, and it is critical that the funds begin to flow to allow governments to address the epidemic in their communities as soon as possible; and
Third, you know first-hand the effects of the opioid epidemic on your community. Funds from this settlement will be used to commence abatement of the crisis and provide relief to your citizens while litigation and settlement discussions proceed against numerous other defendants in the opioid industry.”
As with previous settlements, the actual settlement amounts will be based upon the number of participating governmental entities, and proceeds will be spent on additional opioid remediation. The amounts to be allocated to the City of McKinney are determined by the “Texas Term Sheet” that the City has already agreed to and adopted for this purpose or the specific allocations identified in the various settlements if directly with the Defendants. The vast majority of the funds are earmarked for use by Texas and its subdivisions to remediate and abate the impacts of the opioid crisis. These Settlements also contain injunctive relief provisions governing the opioid marketing as well as the sale and dispensing practices at the heart of the opioid claims in the lawsuits.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A