HomeMy WebLinkAbout2022 11_Janssen OK Subdivision Opioid Settlement AgreementTulsa County Clerk - Michael Willis
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CITY OF OWASSO, OKLAHOMA
RESOLUTION 2022 -11
A RESOLUTION TO APPROVE PARTICIPATION IN
JANSSEN OKLAHOMA SUBDIVISION OPIOID SETTLEMENT AGREEMENT
WHEREAS, pharmaceutical opioids have harmed the City of Owasso and its citizens. This
harm was created and exacerbated by the misconduct and illegal activities of opioid
manufacturers and distributors, including Johnson & Johnson, Janssen Pharmaceuticals, Inc.,
Ortho - McNeil Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively
"Janssen ").
WHEREAS, The City of Owasso, Oklahoma filed suit to address and seek recovery for the
harms cause to it and its citizens.
WHEREAS, Janssen has agreed to settle the claims of certain Oklahoma Participating
Subdivisions in the Janssen Oklahoma Subdivision Opioid Settlement Agreement.
THEREFORE, it was duly moved and seconded that the following resolution be adopted.
THEREFORE, BE IT RESOLVED that the City of Owasso, Oklahoma, hereby elects to, and approves
its participation in, the Janssen Oklahoma Subdivision Opioid Settlement Agreement, authorizes
the Mayor to execute the Settlement Participation Form contained in the Janssen Oklahoma
Subdivision Opioid Settlement Agreement as Exhibit C, and authorizes its counsel to take all
actions required by Exhibit C and the Janssen Oklahoma Subdivision Opioid Settlement
Agreement to effectuate the Janssen Oklahoma Subdivision Opioid Settlement Agreement for
the benefit of City of Owasso, Oklahoma.
PASSED AND APPROVED this 2nd day of August, 2022.
Juliann M. Stevens, ty Clerk
Lombardi, City Attorney
TO: The Honorable Mayor and City Council
FROM: Julie Trout Lombardi
City Attorney
APPROVED BY COUNCIL
AUG 0 2 2022
SUBJECT: Resolution 2022 -10 and Resolution 2022 -11, Approving Participation in Opioid
Litigation Settlement Agreements
DATE: July 28, 2022
BACKGROUND:
The City of Owasso was approached several years ago by the law firms of McAfee & Taft and
Fulmer Sill to discuss multi- district civil litigation against opioid manufacturers. This litigation was
intended to combat the burgeoning opioid epidemic which arose out of decisions and actions
of opioid manufacturers and distributors. The City Council met with attorneys from both firms at
the Worksession on August 14, 2018, and again discussed the matter in executive session on
October 9th and December 4th. On February 19, 2019, the City Council approved participation
in the Opioid Litigation (Amended Resolution No. 2018 -16 attached hereto). The Resolution
provided that any monies received in settlement of this litigation would be used solely for
purposes of prevention, treatment, counseling or education related to the use of opioids and
addiction. Over three (3) years later, two (2) settlements have been proposed. Both settlements
are individually outlined below.
Distributor's Oklahoma Settlement Agreement
This proposed settlement is with the "Big 3" distributors: McKesson Corporation,
AmerisourceBergen and Cardinal Health. The maximum, total amount to be divided amongst
the participating municipalities is $293,740,207.19, payable over an eighteen (18) year period
with the first two (2) years of payments to be made on December 1, 2022, if all deadlines are
met. Attorney fees (25 %) and expenses will be deducted from this amount and attorney fees will
be paid over a seven (7) year period. Owasso's proposed allocation of this award is 1.034%
which equals approximately $978,200.00. These allocations were calculated by the expert
economist retained in this litigation, Dr. Christopher Ruhm, and are based upon objective data
of opioid - related deaths, opioid shipments and the municipal budget for the relevant years. This
settlement requires that eighty -five percent (85 %) of the total payments to subdivisions be used
for opioid remediation /abatement. The attached White Paper outlines permitted remediation
uses.
Janssen Oklahoma Subdivision Ooioid Settlement Agreement
Janssen is a Johnson & Johnson company and the Settlement Agreement specifically includes
Johnson & Johnson. The total amount of the proposed Janssen settlement is $14,020,446.75,
and, like the Distributor's Settlement, requires 100% by participating municipalities. If approved,
the settlement amount will be paid by Janssen in one (1) payment within thirty (30) days after
the participation date. This necessarily means that the settlement amount will be paid in 2022.
Owasso's allocation under this proposed settlement is 1.034% which equates to a gross payment
of $187,600.00. Attorney fees (25 %) and costs will be deducted from that amount. Proceeds
from this settlement agreement must be used to remediate the harm caused by Janssen or to
provide restitution for such harms.
Resolutions 2022 -10, 2022 -11
Page 2
RECOMMENDATION:
Staff recommends approval of Resolution 2022 -10 and Resolution 2022 -11, authorizing
participation in the Distributor's Oklahoma Settlement Agreement and the Janssen Oklahoma
Subdivision Opioid Settlement Agreement, and authorization to execute all necessary
documents.
ATTACHMENTS:
Resolution No. 2022 -10
Resolution No. 2022 -11
Distributors Oklahoma Settlement Agreement
Janssen Oklahoma Subdivision Opioid Settlement Agreement
Exhibit 1 Distributor Settlement Agreement (Global)
Memo of Understanding with State (Sharing Agreement)
Addendum to Sharing Agreement with State
Settlement Participation Form, Exhibit G
White Paper on Abatement Purposes under Distributor Settlement with Exhibit E, Opioid Remediation Uses
Amended Resolution 2018 -16 approving participation in the Opioid Litigation