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HomeMy WebLinkAbout2026 07_Opioid Participation Remnant DefendantsRESOLUTION 2026-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO TO APPROVE PARTICIPATION IN SETTLEMENTS WITH ASSOCIATED PHARMACIES, INC., JM SMITH CORPORATION, LOUISIANA WHOLESALE DRUG COMPANY, MORRIS AND DICKSON CO., NORTH CAROLINA MUTUAL WHOLESALE DRUG COMPANY, INC. AND UNITED NATURAL FOODS, INC. AND AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE THE REMNANT DEFENDANTS' COMBINED SUBDIVISION PARTICIPATION AND RELEASE FORM CONTAINED IN THE REMNANT DEFENDANTS' SETTLEMENT AGREEMENT AS EXHIBIT G AND TO TAKE ALL ACTIONS REQUIRED TO EFFECT THE SETTLEMENTS 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 manufacturers, including small generic opioid manufacturers. WHEREAS, City of Owasso, Oklahoma, filed suit to address and seek recovery for the harm caused to it and its citizens. WHEREAS, six opioid manufacturers and/or distributors, Associated Pharmacies, Inc., JM Smith Corporation, Louisiana Wholesale Drug Company, Morris and Dickson Co., North Carolina Mutual Wholesale Drug Company, Inc., and United Natural Foods, Inc. (collectively "Settling Remnant Defendants"), have agreed to settle the claims of certain subdivisions in the Remnant Defendants Settlement Agreement dated February 23, 2026. 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 Remnant Defendant Settlement Agreement, and authorizes its Mayor, City Manager, or other authorized designee, to execute the Remnant Defendants' Combined Subdivision Participation and Release Form contained in the Remnant Defendants' Settlement Agreement as Exhibit G, which participation and release form may be executed in the DocuSign platform. THEREFORE, BE IT FURTHER RESOLVED that the City of Owasso, Oklahoma, further authorizes its Mayor, City Manager and legal counsel to take all actions required by the Remnant Defendants Settlement Agreement to effectuate the Remnant Defendants Settlement Agreement for the benefit of City of Owasso, Oklahoma, including executing any documents required to finalize the participation of City of Owasso in the Remnant Defendants Settlement Agreement. The City of Owasso, Oklahoma adopts the above ,solution prNthe 14th day of April, 2026. • /AJulianSnM..,Stevens- `a Julk Lorribardi,• - f Fruga, Mayor EXHIBIT G Six (6) Remnant Defendants' Combined Subdivision Participation and Release Form ("Combined Participation Form") Governmental Entity: City of Owasso State: Oklahoma Authorized Official: Alvin Fruga, Mayor Address 1: 200 South Main Street Address 2: City, State, Zip: Owasso, OK 74055 Phone: 918-376-1500 Email afro a r,ci ofowasso.com The governmental entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Govermnental Entity pursuant to the six (6) Remnant Defendants' Settlement Agreement ('RDSA"), dated February 23, 2026, and described further in Paragraph 1, and acting through the undersigned authorized official, hereby elects to participate in the RDSA, release all Released Claims against all Released Entities, and agrees as follows: The Governmental Entity hereby elects to participate in the RDSA as a Participating Subdivision with each of the following six (6) Remnant Defendants that are parties to the RDSA: (1) Associated Pharmacies, Inc. (and American Associated Pharmacies), (2) J M Smith Corporation, (3) Morris and Dickson Co., L.L.C., (4) Louisiana Wholesale Drug Company, Inc., (5) North Carolina Mutual Wholesale Drug Company, Inc., and (6) United Natural Foods, Inc. (and SuperValu). 2. The Governmental Entity is aware of and has reviewed the RDSA, understands that all capitalized terms not defined in this Combined Participation Form have the meanings defined in the RDSA, and agrees that by executing this Combined Participation Fonn, the Governmental Entity elects to participate in the RDSA and become a Participating Subdivision as provided in the RDSAs. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed against any Released Entity in the RDSA. With respect to any Released Claims pending in In Re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs' Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice for each of six (6) Remnant Defendants listed in Paragraph I above substantially in the form found at https:llnationalopioidsettlen?ent.com/additional-settlenientsl 4. The Governmental Entity agrees to the terms of each of the R D S A pertaining to Participating Subdivisions as defined therein. G-1 By agreeing to the terms of the RDSA settlements and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. The Governmental Entity agrees to use any monies it receives through the RDSA solely for the purposes provided therein. 7. The Governmental Entity submits to thejurisdiction of the MDL Court and agrees to follow the process for resolving any disputes described in the RDSA. 8. The Governmental Entity has the right to enforce the RDSA as provided therein. 9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes of the RDSA, including without limitation all provisions related to release of any claims, and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in the RDSA in any forum whatsoever. The release provided for in the RDSA is intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in the RDSA the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The RDSA shall be a complete bar to any Released Claim against the Released Entities. 10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the RDSA. 11. In connection with the releases provided in the RDSA, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party. G-2 A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims in the RDSA, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whetherthrough ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Govermnental Entities' decision to participate in the RDSA. 12. The Governmental Entity understands and acknowledges that nothing herein is intended to modify in any way the terms of any of the RDSA, to which Governmental Entity hereby agrees. To the extent this Combined Participation Form is interpreted differently from the RDSA in any respect, the RDSA controls. I have all necessary power and authorization to execute this Combined Participation Form on behalf of the Governmental Entity. Signature: zq� -�' A Name: Alvin Fruga Mayor Title: Date: 4/14/2026 G-3 TO: The Honorable Mayor and City Council FROM: Julie Trout Lombardi, City Attorney SUBJECT: Resolution 2026-07, Authorization to Participate in the Remnant Defendants' Settlement Agreement in the opioid litigation DATE: April 10, 2026 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 Work session 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. Throughout the past few years, settlements have been reached with various defendants in this litigation. The funds received have a separate line item from other sources of City revenue and have been kept discrete from other City funds. In the near future, it will be appropriate for the Council to discuss how those funds may be implemented and used in accordance with the previous Resolutions and settlement agreements. However, counsel for the City has advised that group settlements have been reached with additional defendants, and counsel recommends approval of those settlement agreements. In addition, counsel has further recommended authorization and approval of a settlement agreement with Remnant Defendants. An email memorandum from Tony Puckett of McAfee & Taft is attached for your review. RECOMMENDATION: Staff recommends approval of Resolution 2026-07, authorizing participation in the additional settlement agreements and authorization to execute all necessary documents. ATTACHMENTS: Proposed Resolution 2026-07 and exhibits Tony Puckett Email and exhibits