HomeMy WebLinkAboutVIII-07 National Opioid Settlement
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: City Administrator Dan Wietecha
Date: March 20, 2023
Item: National Opioids Settlement
Council Action Requested:
Adopt resolution Authorizing Participation in National Opioids Settlement.
Background Information:
Minnesota has joined a broad multistate coalition in reaching nationwide settlements with several opioid
manufacturers and distributors: Teva, Allergan, CVS, Walgreens, and Walmart. The settlements resolve
investigations and lawsuits against these companies for their role in the opioid crisis.
Minnesota will be eligible to receive more than $235M over 15 years. Similar to the settlement in 2022,
funds will be distributed based on a formula to cities over 30,000 population (not including City of
Hastings) and counties. The total amount of payments to Minnesota will be determined by the overall
degree of participation by cities and counties. Hastings signing on to the settlement agreement will help
Minnesota reach a “critical mass” of participation and receive a greater amount of the potential
settlement.
The City participated in a similar national opioid settlement in 2022. Hastings Police Department (as well
as Farmington, Mendota Heights, Rosemount, South St. Paul, and West St. Paul police departments) have
requested that Dakota County use a portion of its settlement proceeds to support the County Drug Task
Force.
Financial Impact:
Not applicable
Committee Discussion:
Not applicable
Attachments:
• Resolution: Authorizing Participation in National Opioids Settlement
• National Opioid Settlement Overview
• LMC Opioid Settlement Flyer
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City of Hastings
Dakota County, Minnesota
Resolution
Authorizing Participation in National Opioids Settlement
WHEREAS, the State of Minnesota, Minnesota counties and cities, and their people have been
harmed by misconduct committed by certain entities that engage in or have engaged in the
manufacture, marketing, promotion, distribution, or dispensing of an opioid analgesic;
WHEREAS, the State and Local Governments share a common desire to abate and alleviate the
impacts of the misconduct described above throughout Minnesota;
WHEREAS, while the State and Local Governments recognize the sums which may be available
from the aforementioned litigation will likely be insufficient to fully abate the public health crisis
caused by the opioid epidemic, they share a common interest in dedicating the most resources
possible to the abatement effort;
WHEREAS, Minnesota’s share of settlement funds from the National Settlement Agreements will be
maximized only if all Minnesota counties, and cities of a certain size, participate in the settlements;
and
WHEREAS, the City of Hastings has previously executed the Minnesota Opioid State-Subdivision
Memorandum of Agreement;
Now, therefore, be it resolved by the Hastings City Council that the Mayor is authorized to execute
the Participation Form(s) associated with the National Opioid Settlement.
Adopted this 20th day of March, 2023.
________________________________
Mary Fasbender, Mayor
Attest:
________________________________
Kelly Murtaugh, City Clerk
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National Opioid Settlements: Teva, Allergan, CVS, Walgreens, and Walmart
Hastings city, MN
Reference Number: CL-386866
TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS:
THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT NATIONAL OPIOID SETTLEMENTS.
SETTLEMENT OVERVIEW
Proposed nationwide settlement agreements (“Settlements”) have been reached that would resolve opioid
litigation brought by states, local political subdivisions, and special districts against two pharmaceutical
manufacturers, Teva and Allergan (“Manufacturers”), and three pharmacies, CVS, Walgreens, and
Walmart (“Pharmacies”). Local political subdivisions and special districts are referred to as “subdivisions.”
The Settlements require the settling Manufacturers and Pharmacies to pay billions of dollars to abate the
opioid epidemic. The Settlements total over $20 billion. Of this amount, approximately $17 billion will be
used by participating states and subdivisions to remediate and abate the impacts of the opioid crisis.
Depending on participation by states and subdivisions, the Settlements require:
Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version
of the drug Narcan over 10 years or an agreed upon cash equivalent over 13 years;
Allergan to pay up to $2.02 billion over 7 years;
CVS to pay up to $4.90 billion over 10 years;
Walgreens to pay up to $5.52 billion over 15 years; and
Walmart to pay up to $2.74 billion in 2023, and all payments to be made within 6 years.
As provided under the Agreements, these figures are net of amounts attributable to prior settlements
between the Defendants and certain states/subdivisions, and include amounts for attorneys’ fees and
costs.
The Settlements also contain injunctive relief governing opioid marketing, sale, distribution, and/or
dispensing practices.
Each of the proposed settlements has two key participation steps.
First, each eligible state decides whether to participate in each Settlement. A list of participating states for
each settlement can be found at https://nationalopioidsettlement.com.
Second, eligible subdivisions within each participating state decide whether to participate in each
Settlement. The more subdivisions that participate, the more funds flow to that state and its subdivisions.
Any subdivision that does not participate cannot directly share in any of the settlement funds, even if the
subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. If the
state does not participate in a particular Settlement, the subdivisions in that state are not eligible to
participate in that Settlement.
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WHO IS RUBRIS INC. AND WHAT IS THE IMPLEMENTATION ADMINISTRATOR?
The Settlements provide that an Implementation Administrator will provide notice and manage the
collection of participation forms. Rubris Inc. is the Implementation Administrator for these new Settlements
and was also retained for the 2021 national opioid settlements.
WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE?
Your state has elected to participate in one or more of the Settlements with the Manufacturers and/or the
Pharmacies, and your subdivision may participate in those Settlements in which your state has elected to
participate. This notice is also sent directly to counsel for such subdivisions if the Implementation
Administrator has their information.
If you are represented by an attorney with respect to opioid claims, please contact them. Subdivisions
can participate in the Settlements whether or not they filed a lawsuit or are represented.
WHERE CAN YOU FIND MORE INFORMATION?
Detailed information about the Settlements, including each settlement agreement, may be found at:
https://nationalopioidsettlement.com. This website also includes information about how the Settlements
are being implemented in most states and how funds will be allocated within your state.
You are encouraged to review the settlement agreement terms and discuss the terms and benefits with
your counsel, your Attorney General’s Office, and other contacts within your state. Information and
documents regarding the Settlements and your state allocation can be found on the settlement website at
https://nationalopioidsettlement.com.
Your subdivision will need to decide whether to participate in the proposed Settlements, and subdivisions
are encouraged to work through this process before the April 18, 2023 deadline.
HOW DO YOU PARTICIPATE IN THE SETTLEMENTS?
The Settlements require that you take affirmative steps to “opt in” to the Settlements.
In the next few weeks, you will receive documentation and instructions from the Implementation
Administrator or, in some cases, your Attorney General’s Office. In order to participate in a settlement, a
subdivision must sign and return the required Participation Form for that settlement.
Please add the following email addresses to your “safe” list so emails do not go to spam / junk folders:
dse_na3@docusign.net and opioidsparticipation@rubris.com . Please monitor your email for the
Participation Forms and instructions.
All required documentation must be signed and returned on or before April 18, 2023.
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Settlements have been reached with opioid manufacturers Teva Pharmaceuticals and Allergan, and
retail pharmacy chains Walmart, CVS and Walgreens.
Awards are dependent on participation by both litigating and non-litigating local governments and could
exceed $235 million over 15 years for Minnesota.
To maximize the money coming to Minnesota, all cities with populations over 10,000 are being asked to
sign on to these settlements by April 18, 2023. Anticipated breakdown of payouts nationwide:
• Teva will pay up to $4.25 billion over 13 years.
• Allergan will pay up to $2.37 billion over 7 years.
• Walmart will pay up to $3.1 billion over 6 years, with a possibility for states to earn the entire
amount in the first year.
• CVS will pay up to $5 billion over 10 years.
• Walgreens will pay up to $5.7 billion over 15 years
.
State/Local Government Memorandum of Agreement
Under the MOA, abatement funds will be directed as follows:
• Seventy-five percent (75%) will be paid directly to counties and certain cities/other
municipalities that participate in the settlement process (e.g., cities over 30,000 population and
any city that has a public health department).
• Twenty-five percent (25%) of the abatement funds will be paid directly to the State.
• Any city allocated a share may elect to have its full share or a portion of its full share directed to
the county or counties in which it is located.
• Each county must consult annually with cities in its jurisdiction regarding future use of
settlement funds, including holding an annual public meeting to receive input on proposed uses
and to encourage collaboration between local governments.
Action steps for cities by April 18, 2023
A notice of the settlements with Teva, Allergan and the three pharmacy chains along with the invitation
to join was sent to cities on March 8, 2023. Participation is similar to the process cities used for joining
last year’s Johnson & Johnson and distributors settlements. The deadline to participate in this latest
round of settlements is April 18, 2023.
Action Step, due by April 18: Cities with 2019 populations of at least 10,000 must sign documents via
DocuSign and execute an amendment to last year’s MOA. These documents are included in the email
from opioidsparticipation@rubris.com.
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The League’s Role
Since 2022, the League has been working closely with state and local government partners to develop
and implement a state-subdivision agreement (or “Minnesota Memorandum of Agreement”) designed
to maximize the settlement funds coming to the state from litigation against opioids manufacturers and
distributors. The money is earmarked to fund needed abatement and remediation programs to fight
against the devastating impacts on Minnesota communities borne from the opioid crisis.
The League continues to work closely with state/county partners to facilitate communications about the
settlement sign-on process and reporting requirements that will reflect how settlement funds are being
used across the state.
League Resources and Contacts
Visit the League’s website for links to these resources and latest news: lmc.org/resources/opioid-
epidemic/.
Please direct questions to the League of Minnesota Cities General Counsel: (800) 925-1122.
Patricia Beety, General Counsel Edward Cadman, Associate General Counsel
pbeety@lmc.org ecadman@lmc.org
(651) 281-1270 (651) 281-1229
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