HomeMy WebLinkAbout8721RESOLUTION NO. 8721
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS RATIFYING
THE CITY OF REDLANDS' ENTRY INTO THE SETTLEMENT WITH PURDUE
PHARMA AND ITS SUBSIDIARIES AND THE CITY OF REDLANDS' ENTRY INTO
THE SETTLEMENT WITH ADDITIONAL SETTLING DEFENDANTS: ALVOGEN,
AMNEAL, APOTEX, HIKMA, INDIVIOR, MYLAN, SUN, AND ZYDUS RELATED TO
THE MULTIDISTRICT LITIGATION AGAINST MANUFACTURERS AND
DISTRIBUTORS CONTRIBUTING TO THE OPIOID EPIDEMIC; AND AUTHORIZE
THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE ALL RELATED
DOCUMENTS IN CONNECTION WITH THE SETTLEMENTS
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse
addiction, overdose, and death, forcing the State of California and California counties and cities to
spend billions of dollars each year to address the direct consequences of this crisis; and
WHEREAS, pending in the U.S. District Court for the Norther District of Ohio is a
multidistrict litigation ("MDL") being pursued by numerous public entity plaintiffs against the
manufacturers and distributors of various opioids based on the allegation that the defendant's
unlawful conduct caused the opioid epidemic; and
WHEREAS, the City of Redlands previously approved entry into the settlement with
McKesson Corporation, Johnson & Johnson, and Janssen Pharmaceuticals in 2021 and CVS,
Walmart, Walgreens, Teva and Allergan in 2023; and
WHEREAS, the City of Redlands previously approved entry into the settlement with The
Kroger Company ("Kroger"), a defendant in the MDL in March 2024; and
WHEREAS, on or about 2019, Purdue Pharma filed for bankruptcy in response to thousands
of lawsuits on allegations that the company owners contributed to the nationwide opioid crisis; and
WHEREAS, in addition to Purdue Pharma bankruptcy settlement, new national opioid
settlements have recently been reached with eight (8) additional defendants: Alvogen, Amneal,
Apotex, Hikma, Indivior, Maylan, Sun, and Zydus; and
WHEREAS, as part of the settlement with the Settling States, local subdivisions, including
certain cities, that are not plaintiffs in the MDL may participate in the settlements in the exchange
for a release of the Settling Defendants; and
WHEREAS, the State of California has negotiated a State -Subdivision Agreement
establishing how Purdue Pharma and the Additional Settling Defendants settlement funds will be
distributed among the State, counties, and cities; and
WHEREAS, copies of the Purdue Pharma Settlement Agreement has been provided to the
City Council with this Resolution; and
WHEREAS, copies of the Additional Settling Defendant Agreements (Alvogen, Amneal,
Apotex, Hikma, Indivior, Maylan, Sun, and Zydus) have been provided to the City Council with
this Resolution; and
WHEREAS, the Settlement Agreements provide, among other things, payments of certain
sum to settling government entities in California including the State of California and Participating
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Subdivisions upon occurrence of certain events as defined in the Settlement Agreement ("California
Opioid Funds"); and
WHEREAS, California local governments in the MDL have engaged in extensive
discussions with the State Attorney General's Office ("AGO") as to how California Opioid Funds
will be allocated, which has resulted in the Proposed California State -Subdivision Agreements
Regarding Distribution and Use of Settlement Funds ("Allocation Agreements") from the
settlements with the Settling Defendants; and
WHEREAS, the Allocation Agreements allocate the California Opioid Funds as follows:
15% to the State Fund; 70% to the Abatement Fund; and 15% to the Subdivision Fund. For the
avoidance of doubt, all funds allocated to California from the Settlements shall be combined
pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to
the State of California (the "State of California Allocation"), 70% to the California Abatement
Accounts Fund ("CA Subdivision Fund"); and
WHEREAS, under the Purdue Pharma Settlement Agreement, and the Settlement
Agreements with the Additional Settling Defendants (Alvogen, Amneal, Apotex, Hikma, Indivior,
Maylan, Sun, and Zydus), certain local subdivisions that did not file a lawsuit against the Settlement
Defendants may qualify to participate in the settlements and obtain funds from the Abatement
Account Fund; and
WHEREAS, the City is eligible to participate in the Settlements and become a CA
Participating Subdivision; and
WHEREAS, the funds in the CA Abatement Accounts Fund (the 70% allocation) will be
allocated based on the allocation model developed in connection with the proposed negotiating
class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only
those cities and counties that are eligible, based on population or litigation status, to become a CA
Participating Subdivision (those above 10,000 in population). The percentage from the CA
Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix
1 to the Allocation Agreement provided to the City Council with the Resolution. The City's share
of the CA Abatement Accounts Fund will be a product of the total in the CA Abatement Accounts
Fund multiplied by the City's percentage set forth in Appendix 1 of the Allocation Agreements (the
"Local Allocation"); and
WHEREAS, a California Participating Subdivision that is a city will be allocated its Local
Allocation share as of the date on which it becomes a Participating Subdivision. The Local
Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which
the city is located, unless the city elects to take a direct election of the settlement funds, so long as:
(a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement
Fund Administrator that it requests direct payment at least 60 days prior to Payment Date; and
WHEREAS, the intent of this Resolution is to ratify the City's entry into the Purdue Pharma
Settlement and the Additional Settlements with Alvogen, Amneal, Apotex, Hikma, Indivior,
Maylan, Sun, and Zydus, and authorize the City Manager, or his designee, to authorize the City to
enter into the Purdue Pharma Settlement Agreement and the Settlement Agreements with Alvogen,
Amneal, Apotex, Hikma, Indivior, Maylan, Sun, and Zydus, with the Settling Defendants by
executing the Participation Agreements and to enter into the Allocation Agreements by executing
the signature pages to those agreements.
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I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing resolution was
duly adopted by the City Council at a regular meeting thereof held on the 7th day of October, 2025,
by the following vote:
AYES: Councilmembers Barich, Tejeda, Davis, Shaw; Mayor Saucedo
NOES: None
ABSENT: None
ABSTAIN: None
Jea onaldson, City Clerk
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
Section 1. The Recitals set forth above are true and correct and are incorporated by reference in
this Resolution.
Section 2. That all actions taken on October 7, 2025, by the Fire Department staff with respect
to 1) the execution of the Subdivision Participation and Release Form and 2) Proposed California
State Subdivision Agreement regarding Distribution and Use of Settlement Funds — Purdue Pharma
Settlement are hereby ratified, confirmed and approved.
Section 3. That all actions taken on October 7, 2025, by the Fire Department staff with respect
to 1) the execution of the Subdivision Participation and Release Form and 2) Proposed California
State Subdivision Agreement regarding Distribution and Use of Settlement Funds — Alvogen,
Amneal, Apotex, Hikma, Indivior, Maylan, Sun, and Zydus Settlements are hereby ratified,
confirmed and approved.
Section 4. The City Manager, or his designee, is hereby authorized to execute any and all
documents consistent with and in furtherance of the City Council's approval of the Purdue Pharma
Settlement, and the additional settlements with Alvogen, Amneal, Apotex, Hikma, Indivior,
Maylan, Sun, and Zydus.
ADOPTED, SIGNED AND APPROVED THIS 7th day of October 2025.
Mario Saucedo, Mayor
ATTEST:
Le5ifne Donaldson, City Clerk
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