HomeMy WebLinkAbout8777RESOLUTION NO. 8777
AUTHORIZING THE CITY OF REDLANDS PARTICIPATION IN THE SETTLEMENT WITH
THE REMNANT DEFENDANTS AND ITS SUBSIDIARIES RELATED TO THE
MULTIDISTRICT LITIGATION AGAINST DISTRIBUTORS AND DISPENSERS
CONTRIBUTING TO THE OPIOID EPIDEMIC AND AUTHORITY TO RECEIVE DIRECT
PAYMENT OF SETTLEMENT FUNDS; AND AUTHORIZE THE CITY MANAGER TO
EXECUTE ALL RELATED DOCUMENTS IN CONNECTION WITH THE SETTLEMENT
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 Northern 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 resulting in settlements; and,
WHEREAS the City Council previously authorized the City's participation in settlement
agreements to resolve claims against the following defendants in the litigation: 1) Three large opioid
distributors (McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation)
(2021); 2) Opioid manufacturer Janssen Pharmaceuticals (2021); 3) Five additional entities (Teva,
Allergan, CVS, Walgreens, and Walmart) (2023); 4) The Kroger Company (2024); 5) Purdue
Phanma L.P., certain of its affiliates and the Sackler family (2025); and 6) Opioid manufacturers
Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (2025).
WHEREAS, on or about February 2026, a new settlement was reached between the
plaintiffs in the MDL and Distributors/Dispensaries (Associated Pharmacies, Inc. and American
Associated Pharmacies, J M Smith Corporation, Louisiana Wholesale Drug Company, Inc., Morris
and Dickson Co., North Carolina Mutual Wholesale Drug Company, Inc., and United Natural
Foods, Inc. and its subsidiaries SuperValu and Advantage Logistics) collectively referred to as the
"Remnant Defendants," resulting in a master settlement agreement covering all defendants
(collectively referred to as the "Remnant Defendants Settlement Agreement"); and
WHEREAS, the proposed Remnant Defendants Settlement Agreement, once finalized, will
result in these defendants paying a combined $97,625,000 in cash for purposes of abating the opioid
epidemic, for which the City would receive a one-time payment based on allocation agreements
that are contingent on factors, including the number of public entities that elect to participate in the
settlements; and
WHEREAS, this Resolution seeks authorization to participate in the Remnant Defendants
Settlement Agreement and authority for the City's direct receipt of the settlement funds; and
WHEREAS, with prior opioid settlement monies utilized by the Redlands Fire Department,
the funds received from the Remnant Defendants Settlement Agreement can only be used for
approved abatement uses, such as opioid abuse treatment services, services for opioid-addicted
individuals who are pregnant, and opioid treatment for incarcerated people, etc.; and
WHEREAS, the deadline to participate in the Remnant Defendants Settlement is May 4,
2026.
1AReso1udons\Res 8700-8799\Resolution No. 8777.bm.04.14.2026.docx
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. The Recitals set forth above are true and correct and are incorporated by
reference in this Resolution.
Section 2. The City Manager is hereby authorized to execute any and all documents
consistent with and in furtherance of the City Council's participation in the Remnant Defendants
Settlement Agreement.
ADOPTED, SIGNED AND APPROVED THIS 215t day of April, 2026.
�i
Mario Saucedo, Mayor
ATTEST:
7 ,e Donaldson, City Clerk
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1AResolutions\Res 8700-87991Resolution No. 8777.bin.04.14.2026.doex
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 2 1 " day of April, 2026, by
the following vote:
AYES: Councilmembers Barich, Tejeda, Davis, Shaw; Mayor Saucedo
NOES: None
ABSENT: None
ABSTAIN: None
J nile Donaldson, City Clerk
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1AResolutionslRes 8700-87991Resolution No. 8777.bm.04.14.2026.docx