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AGENDA ITEM REVIEW FORM |
7.G.
Regular City Council Meeting
- Meeting Date:
- 11/12/2025
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Order
Order
ITEM:
Discussion and possible action on any and all matters regarding Order No. 2025-13. An Order of the Mayor and City Council of the City of San Luis, Arizona, ratifying entering into the settlement proposals to resolve legal claims against Purdue/Sackler and Eight (8) manufacturers for alleged misconduct related to opioids through the In re: National Prescription Opiate Litigation. (Kay Marion Macuil, City Attorney)
SUMMARY:
Time Line: The City Council Actions regarding In re National Prescription Opiate Litigation
On November 13, 2019, the City Council authorized participating in the In re: National Prescription Opiate Litigation multi-jurisdictional lawsuit against manufacturers, distributors, and retailers of prescription opiate drugs for reimbursement for money spent addressing the opioid crisis. (City Council Order No. 2019-10)
On October 13, 2021, the City Council agreed with the Arizona One Plan for allocation of funds for the then possibility of settlement against thirteen (13) entities. (City Council Order No. 2021-10)
On January 10, 2024, there was a settlement. Given San Luis's small share (approximately $200,000) paid out over eighteen (18) years, the City Council had the option to allow the money to go to Yuma County to the Public Health Services District, or that the County distribute the San Luis allocation to the city. The City Council opted for the County to distribute the funds to San Luis. (City Council Order No. 2024-01).
On June 6, 2024, the City Council authorized joining the case against Kroger's supermarket pharmacy. Kroger was not part of the original settlement, but Kroger asked to join, and the Court agreed to open the case, allowing for settlement through In re: National Prescription Opiate Litigation. (City Council Order 2024-04)
The Order Before the City Council in this Agenda Item:
The city received notices of proposed settlements through the In re National Prescription Opiate Litigation. The settlement proposals are with Purdue/Sackler and their shareholders, as well as eight (8) others, who are generic manufacturers called in the settlements the "Secondary Manufacturers." The other eight (8) are Alvogen, Inc., Amneal Pharmaceuticals, LLC, Apotex Corp, Hikma Pharmaceuticals USA Inc., Indivior Inc., Mylan (now part of Viatris Inc.), Sun Pharmaceutical Industries, Inc., and Zydus Pharmaceuticals (USA), Inc. Due to the deadlines to join these settlements, the required releases were signed. This Order is to ratify the entering into these additional settlements.
Because the settlement proposals are many hundreds of pages, they may be accessed at the link www.https://nationalopioidsettlemnt.com and are not attached here.
On November 13, 2019, the City Council authorized participating in the In re: National Prescription Opiate Litigation multi-jurisdictional lawsuit against manufacturers, distributors, and retailers of prescription opiate drugs for reimbursement for money spent addressing the opioid crisis. (City Council Order No. 2019-10)
On October 13, 2021, the City Council agreed with the Arizona One Plan for allocation of funds for the then possibility of settlement against thirteen (13) entities. (City Council Order No. 2021-10)
- The allocation is proportionate to San Luis based on historical federal data as to the expenses San Luis had related to the opioid crisis, as one of over 1,300 jurisdictions that signed on. After payment for attorney fees and trust services, the city's proportionate share is 1.2 cents per every $100 distributed, paid out over eighteen (18) years.
- The allocated money must conform to a list of uses related to the opioid crisis listed in the Arizona One Plan. Reporting of expenses goes to the Arizona Attorney General's Office.
On January 10, 2024, there was a settlement. Given San Luis's small share (approximately $200,000) paid out over eighteen (18) years, the City Council had the option to allow the money to go to Yuma County to the Public Health Services District, or that the County distribute the San Luis allocation to the city. The City Council opted for the County to distribute the funds to San Luis. (City Council Order No. 2024-01).
On June 6, 2024, the City Council authorized joining the case against Kroger's supermarket pharmacy. Kroger was not part of the original settlement, but Kroger asked to join, and the Court agreed to open the case, allowing for settlement through In re: National Prescription Opiate Litigation. (City Council Order 2024-04)
The Order Before the City Council in this Agenda Item:
The city received notices of proposed settlements through the In re National Prescription Opiate Litigation. The settlement proposals are with Purdue/Sackler and their shareholders, as well as eight (8) others, who are generic manufacturers called in the settlements the "Secondary Manufacturers." The other eight (8) are Alvogen, Inc., Amneal Pharmaceuticals, LLC, Apotex Corp, Hikma Pharmaceuticals USA Inc., Indivior Inc., Mylan (now part of Viatris Inc.), Sun Pharmaceutical Industries, Inc., and Zydus Pharmaceuticals (USA), Inc. Due to the deadlines to join these settlements, the required releases were signed. This Order is to ratify the entering into these additional settlements.
Because the settlement proposals are many hundreds of pages, they may be accessed at the link www.https://nationalopioidsettlemnt.com and are not attached here.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE ORDER NO. 2025-13, TO RATIFY ENTERING INTO SETTLEMENT PROPOSALS IN THE NATIONAL PRESCRIPTION OPIATE LITIGATION, AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Please see the fiscal impact statement
- CITY/STATE/FEDERAL FUNDS:
- Please see the fiscal impact statement
- TOTAL:
- Please see the fiscal impact statement
- BUDGETED AMOUNT:
- Please see the fiscal impact statement
- AVAILABLE AMOUNT TO TRANSFER:
- Please see the fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Please see the fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This Agenda Item ratifies the signed participation in settlements and releases of claims so that the City of San Luis can be part of the Purdue/Sackler and the eight Secondary (Generic) Manufacturers proposed settlement in the In re: National Prescription Opiate Litigation related to alleged misconduct related to the opioid crisis. If the Ohio Court approves the settlements, the city would receive a share of the settlement money. There is no cost to the city. The attorneys working on the case are paid directly from the settlement funds.
Attachments
- Order No. 2025-13
- Exhibit A Participation in Settlements & Release of Claims
- Notice Purdue Settlement
- Notice 8 Secondary (Generic) Manufacturers