Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-R62, Approval to Vote in Favor of Accepting the Purdue Pharma Bankruptcy Plan, Authorize the Mayor or Mayor’s Designee to Execute Participation Agreements to Settle Outstanding Claims in the Opioid Litigation, and Ratify Execution of Prior Participation Forms.
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Submitted By: Richard Shiller, Deputy City Attorney, City Attorney’s Office.
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): This item is requesting the City Council’s approval and adoption of a resolution authorizing the Mayor or her designee to execute two settlement participation forms in the ongoing opioid litigation; ratify prior participation forms executed by the City in same; authorize the Mayor or her designee to execute future participation forms in the opioid litigation after consultation with and advice of outside counsel; and authorize outside counsel to vote in favor of the Purdue Pharma bankruptcy.
Presentation Information: There is no formal presentation, but staff is available for questions.
Staff Recommendation: Move that the Council: approve and adopt the resolution as presented.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the proposed resolution with amendments.
2. Move that the Council not approve the proposed resolution and provide further direction for outside counsel.
Background: The Purdue bankruptcy plan and settlement with the Sackler family are moving forward toward final approval, which we expect to occur very soon. These settlements have broad support from all 50 states and many subdivisions nationwide. The Purdue bankruptcy estate is expected to provide approximately $1.5 billion, and the Sackler family has agreed to contribute $6.5 billion over the next 15 years, resulting in a total value of $8 billion. The proposed settlements also impose restrictions intended to prevent future misconduct, including prohibiting the Sacklers from engaging in the opioid business in the future. The Bankruptcy Court recently approved Purdue’s disclosure statement, which allows the voting process to proceed in which the City is entitled to vote. The Plaintiffs Executive Committee (PEC) has recently finalized additional settlements with the following manufacturers: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun Pharmaceuticals, Zydus, and Sandoz. These companies were not part of previous national settlements. The total amount of the manufacturer settlements is valued at $1.2 billion, in which the City will receive a portion. The City’s outside counsel, the Romano Law Group, advises that the City approve the bankruptcy plan and enter into both settlement agreements.
Issues/Analysis: N/A.
Financial Information: N/A.
Special Consideration: This item is time sensitive as the deadline to sign the participation form to enter the Purdue Pharma settlement agreement is September 30, 2025. The deadline to sign the participation form for the manufacturer settlements is October 8, 2025.
Location of Project: N/A
Business Impact Statement: N/A
Attachments:
1. Resolution
2. Exhibit A - Signed Participation Agreements (8) from 2021-2022.
3. Exhibit B - Participation Form for the Purdue/Sackler settlement (Due September 30).
4. Exhibit C - Participation Form for the Secondary (8) Manufacturers settlements (due October 8).
NOTE: All the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 2938.
Legal Sufficiency Review:
Reviewed by Richard Shiller, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.