HomeMy WebLinkAbout2023 05_Participate in Allergan Settlement AgreementCITY OF OWASSO, OKLAHOMA
RESOLUTION 2023-05
A RESOLUTION TO APPROVE PARTICIPATION IN ALLERGAN SETTLEMENT AGREEMENT
WHEREAS, pharmaceutical opioids have harmed the City of Owasso, Oklahoma and its
citizens. This harm was created and exacerbated by the misconduct and illegal activities of
pharmaceutical supply chain participants, including Allergan Finance L.L.C. and Allergan Limited
(f /k /a Allergan plc, which, in turn, was f /k /a Actavis pls (collectively "Allergan ").
WHEREAS, the City of Owasso, Oklahoma filed suit to address and seek recovery for the
harms caused to it and its citizens.
WHEREAS, Allergan has agreed to settle the claims of the State of Oklahoma and certain
Oklahoma subdivisions in the Allergan Settlement Agreement dated November 22, 2022.
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 participate, and
hereby approves its participation in, the Allergan Settlement Agreement, authorizes the Mayor, or
the Mayor's designee, to execute the Subdivision Participation and Release Form contained In
the Allergan Settlement Agreement as Exhibit K (including executing such Participation Form
electronically or in paper form), and agrees to the terms set forth in the Participation Form,
including dismissal with prejudice of the City of Owasso's claims against Allergan.
THEREFORE, BE IT RESOLVED THAT: the City of Owasso, Oklahoma hereby approves the Allergan
State - Subdivision Agreement, and further ratifies the actions of its legal counsel in executing
documents necessary for the City of Owasso to participate in the Allergan State- Subdivision
Agreement and the Allergan Settlement Agreement.
THEREFORE, BE IT RESOLVED THAT: the City of Owasso, Oklahoma hereby approves the Allergan
State Back -Stop Agreement, and further ratifies the actions of its legal counsel in executing
documents necessary for the City of Owasso to participate in the Allergan State Back -Stop
Agreement and the Allergan Settlement Agreement.
THEREFORE, BE IT RESOLVED THAT: the City of Owasso, Oklahoma, further authorizes its Mayor and
legal counsel to take all actions required by the Allergan Settlement Agreement, and the other
agreements related to the Allergan Settlement Agreement referenced herein, for the benefit of
the City of Owasso, Oklahoma, including executing any documents required to finalize the
participation of the City of Owasso, Oklahoma in the Allergan Settlement Agreement.
PASSED AND APPROVED this 4th day of April, 2023.
Kelly Lewi , Mayor
ATTEST: Chris Garrett, Deputy City Clerk
APPROVED AS TO FORM:
Julie Lombardi, City Attorney
TO: The Honorable Mayor and City Council
FROM: Julie Trout Lombardi
City Attorney
APPROVED BY COUNCIL
APR 0 4 2023
SUBJECT: Resolutions 2023 -04, 2023-05,2023-06, 2023 -07 and 2023 -08 Approving
Participation in Five (5) Additional Opioid Litigation Settlement Agreements
DATE: March 31, 2023
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. 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.
The Distributor's Settlement Agreement and the Janssen Oklahoma Subdivision Opioid
Settlement Agreement were approved by the City Council on August 2, 2022, and monies are
being received from those settlements. Counsel for the City has now recommended approval
of five (5) additional settlements detailed below.
Teva Settlement Aareement
The proposed settlement with Teva will pay Oklahoma subdivisions up to $3.34 billion over a
thirteen (13) year period, and will additionally provide either $1.2 billion of its generic version of
the drug Norcan over ten (10) years or $240 million in cash in lieu of product as each state may
select.
Allergan Settlement Agreement
The proposed settlement with Allegan will pay up to $2.02 billion over a seven (7) year period.
CVS Settlement Agreement
The proposed settlement with CVS will pay up to $4.9 billion over ten (10) years.
Walgreens Settlement Agreement
The proposed settlement with Walgreens will pay up to $5.52 million over fifteen (15) years.
Walmart Settlement Agreement
The proposed settlement with Walmart will pay up to $2.74 billion in 2023, and all additional
payments will be made within six (6) years.
The settlements detailed above consist of base payments and incentive payments. The more
subdivisions in Oklahoma that participate, the more in incentive payments the defendants will
pay. The settlement agreements also contain injunctive relief requiring the defendants to
change the practices that contributed to the oral epidemic. The deadline to approve
participation in these settlements is April 18, 2023.
Resolutions 2023 -04, 2023 -05, 2023 -06, 2023 -07, 2023 -08
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RECOMMENDATION:
Staff recommends approval of Resolutions 2023 -04, 2023 -05, 2023 -06, 2023 -07 and 2023 -08
authorizing participation in the five (5) settlement agreements above, and authorization to
execute all necessary documents.
ATTACHMENTS:
Staff Memorandum dated July 28, 2022
Resolution No. 2023 -04
Resolution No. 2023 -05
Resolution No. 2023-06
Resolution No. 2023 -07
Resolution No. 2023 -08