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AI- 7736
   .
Special/Executive Session Board of Supervisors Mtg - 9:00 am
Meeting Date:
06/18/2024
Title:
Opioid Multi District Litigation
Submitted By:
Lara Loewenheim, Board of Supervisors
Department:
Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Document Signatures:
# of ORIGINALS
Submitted for Signature:
NAME
of PRESENTER:
Christine J. Roberts
TITLE
of PRESENTER:
Chief Civil Deputy County Attorney
Mandated Function?:
Source of Mandate
or Basis for Support?:

Information

Agenda Item Text:

Discussion and direction regarding the National Opioids Settlement Agreement with Kroger Company.

Pursuant to A.R.S. § 38-431.03 (A)(3) and (4), the Board may go into executive session for legal advice with the attorney of the public body and to consider its position and instruct attorneys regarding the public body’s position in pending litigation.

Background:

In anticipation of a global settlement in the Opioid MDL, on July 9, 2020, at a Special Meeting, the Board of Supervisors approved the County Attorney’s recommendation to participate in the One Arizona Memorandum of Understanding (MOU), outlining the settlement allocation and structure, and authorized the County Attorney to sign the MOU on behalf of the County.

On July 21, 2021, a $26 Billion global settlement was reached with the three largest Opioid distributors: Mc Kesson, Cardinal Health and AmeriSource Bergen, and manufacturer Janssen Pharmaceuticals, Inc. and its parent company, Johnson and Johnson. This global settlement includes states, counties, and cities. Cochise County signed on to the settlement and the funds are being distributed in accordance with the One Arizona Distribution of Settlement Finds Agreement (“One Arizona Settlement”).

On March 14, 2023, Cochise County signed on to global settlements with three pharmacy chains – CVS, Walgreens, and Walmart, and two additional manufacturers – Allergan and Teva. The settlement funds are being distributed in accordance with the One Arizona Settlement.

On September 8, 2023, a $1.4 Billion global settlement with Kroger Co. was announced, which includes $1.2 Billion for participating states and subdivisions to remediate and abate the impact of the opioid crisis. On March 22, 2024, the states signed on to the settlement, with a sufficient number of states signing-on to trigger the next stage of the settlement process.

The next stage of the settlement process is for counties to sign on to the settlement by August 12, 2024.  The funds from this settlement will be distributed in accordance with the One Arizona Settlement. At this time, the Cochise County Attorney’s Office would like to discuss the settlement with the Board of Supervisors and solicit guidance and direction from the Board regarding signing-on to the settlement.

Department's Next Steps (if approved):

Implement any direction provided by Board of Supervisors, including contacting the Arizona Attorney General’s Office to discuss acceptance/rejection of the settlement and submitting any signed documents.

Impact of NOT Approving/Alternatives:

Potential for lower settlement or an unfavorable allocation of the settlement to the County.

To BOS Staff: Document Disposition/Follow-Up:

N/A