TO: Mayor and Commissioners
FROM: Lynn Gelin, City Attorney
DATE: December 7, 2021
Title
APPROVAL OF ALLOCATION AGREEMENT AND PARTICIPATION AGREEMENT RELATED TO IN RE: NATIONAL PRESCRIPTION OPIOID LITIGATION
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Recommended Action:
Recommendation
Motion to approve of Allocation Agreement and Participation Agreement in the matter of In Re: National Prescription Opioid Litigation
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Background:
This agenda item relates to the City’s ongoing opioid litigation, In re: National Prescription Opiate Litigation, MDL No. 2804 (N.D. Ohio).
Allocation Agreement
The City previously passed Resolution 134-21, approving a Memorandum of Understanding (“MOU”) with the State of Florida to fairly apportion settlement funds between the State and its local governments. The MOU has been reduced to a formal agreement in the attached Florida Opioid Allocation and Statewide Response Agreement (“Agreement”). While the Agreement is largely consistent with the MOU, the Agreement distinguishes between the 15% direct city/county allocation and the state and regional allocation such that any claw back would not apply to the local direct payments. The Agreement also confirms the State is continuing to seek an agreement from the federal government to limit or reduce its right to claw back funds. In addition, the Agreement contains provisions relating to the efficient and effective use of the funds by way of program requirements, along with reporting and auditing requirements which apply as a matter of law. Importantly, by executing the Participation Agreement (discussed further below), the City is accepting the terms of this Agreement.
Participation Agreements (Releases)
Two Participation Agreements have been included as backup to this agenda item. One is applicable to the Distributors (McKesson Corporation, Cardinal Health, Inc., and Amerisource Bergen Corporation) and the other applies to Janssen. Execution of these Releases serves to release all opioid claims against the Se...
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