Opioid Litigation Opt-inCity of Dubuque
City Council Meeting
Consent Items # 6.
Copyrighted
January 3, 2022
ITEM TITLE: Opioid Litigation Opt -in
SUMMARY: City Attorney requesting the City Council formally endorse the prior opt -in
to the nationwide opioid litigation settlement agreements and designate
the City Attorney as the recipient of the notices and signatory on any
necessary documents.
RESOLUTION Endorsing City of Dubuque opting in to opioid litigation
settlement and designating City Attorney as recipient of notices and
signatory on necessary documents
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Staff Memo Staff Memo
Resolution Resolutions
THE CITY OF
DUB E
Masterpiece on the Mississippi
CRENNA M. BRUMWELL, ESQ.
CITY ATTORNEY
To: Mayor Brad Cavanagh
and Members of the City Council
DATE: December 27, 2021
RE: Opioid Litigation Opt -in
Dubuque
MI-Amldca City
2007-2012.2013
2017*2019
I have been tracking opioid litigation as there have been multiple class actions pending.
The City received noticed and an opportunity to participate in two (2) proposed nationwide
settlement agreements which would resolve the opioid litigation against:
Distributors
McKesson,
Cardinal Health,
Amerisource Bergen.
Manufacturer
Jannsen Pharmaceuticals, Inc. / Johnson & Johnson
The notice received came from the State of Iowa as it is participating in the settlements
and reaching out to local governments for participation. The breakdown of the settlement
is:
• The three distributors will pay up to $21 billion over 18 years.
• Johnson & Johnson will pay up to $5 billion over 9 years.
• Total funding distributed will be determined by overall participation by litigating and
non -litigating state and local governments.
• Substantial majority of funds will be spent on opioid treatment and prevention.
• Each state's share of the funding has been determined by agreement among the
states using a formula accounting for the impact of the opioid crisis on the state
including state population, the number of overdose deaths, the number of residents
with substance use disorder, and the number of opioids prescribed.
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 589-4381 / FAX (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org
If all local governments in the state participate Iowa will receive a maximum of
approximately $170 million.
There is a deadline of January 2, 2022, to indicate whether we want to participate in the
settlement agreements.
I am asking for Council to formally endorse the prior opt -in to the settlement agreements
and designation of myself as the recipient of the notices and signatory on any necessary
documents.
cc: Michael C. Van Milligen, City Manager
Jeremy Jensen, Acting Police Chief / Assistant Chief of Police
National Opioids Settlements
P.O. Box 43196
Providence, RI 02940-3196
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Michael Van Milligen, City Manager
50 W 13th Street
Dubuque, [A 52001-4864
Recently, you were mailed notice of your subdivision's right to participate in two proposed nationwide settlement
agreements that would resolve all opioid litigation brought by states and local political subdivisions against
the three largest pharmaceutical distributors, McKesson, Cardinal Health, and AmerisourceBergen, and one
manufacturer, Janssen Pharmaceuticals, Inc., and its parent company Johnson & Johnson. The notice included
a unique registration code to allow your subdivision to register online to receive the required documentation to
participate in the Settlements. However, as a result of an administrative error, you were sent an invalid code. The
correct registration code for your subdivision is:
RKDGVW
We apologize for the inconvenience.
Notice Administrator
TO LOCAL POLITICAL SUBDIVISIONS:
IYVPORTA,VT INFORMATION ABOUT THE NATIONAL OPIOID SETTLEMENT
SUBDIVISIONS MUST SUBAfIT SIGNED DOCUMENTATION TO PARTICIPATE.
THE DEADLINE FOR PARTICIPATION TO MAXIMIZESETTLEMENTBENEFITS ISJANUARY2 2022
If your subdivision is represented by an attorney with respect to opioid claims, please immediately contact them.
SETTLEMENT OVERVIEW
After years of negotiations, two proposed nationwide settlement agreements ("Settlements") have been reached
that would resolve all opioid litigation brought by states and local political subdivisions against the three largest
pharmaceutical distributors, McKesson, Cardinal Health and AmerisourceBergen ("Distributors"), and one
manufacturer, Janssen Pharmaceuticals, Inc., and its parent company Johnson & Johnson (collectively, "Janssen").
The proposed Settlements require the Distributors and Janssen to pay billions of dollars to abate the opioid
epidemic. Specifically, the Settlements require the Distributors to pay up to S21 billion over 18 years and Janssen
to pay up to $5 billion over no more than 9 years, for a total of $26 billion (the "Settlement Amount"). Of the
Settlement Amount, approximately $22.7 billion is earmarked for use by participating states and subdivisions to
remediate and abate the impacts of the opioid crisis.
The Settlements also contain injunctive relief provisions governing the opioid marketing, sale and distribution
practices at the heart of the states' and subdivisions' lawsuits and further require the Distributors to implement
additional safeguards to prevent diversion of prescription opioids.
I
Each of the proposed Settlements has two key participation steps. First, each state decides whether to participate
in the Settlements. Iowa has joined both Settlements. Second, the subdivisions within each participating state
must then decide whether to participate in the Settlements. Generally, the more subdivisions that participate, the
greater the amount of funds that flow to that state and its participating subdivisions. Any subdivision that does
not participate cannot directly share in any of the settlement funds, even if the subdivision's state is settling and
other participating subdivisions are sharing in settlement funds.
This letter is part of the formal notice required by the Settlements.
WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE?
You are receiving this letter because Iowa has elected to participate in both of the two national Settlements against
( l) the Distributors, and (2) Janssen, and your subdivision may participate in the Settlements. This notice is being
sent directly to subdivisions and also to attorneys for subdivisions that we understand are litigating against these
companies. if you are represented by an attorney with respect to opioid claims, please immediately contact them.
Please note that there is no need for subdivisions to be represented by an attorney or to have filed a lawsuit to
participate in the Settlements.
WHERE CAN YOU FIND MORE INFORMATION?
This letter is intended to provide a brief overview of the Settlements. Detailed information about the Settlements
may be found at: https://nationalopioidsettlement.com/. This national settlement website also includes
links to information about how the Settlements are being implemented in your state and how settlement
funds will be allocated within your state. This website will be supplemented as additional documents are
created. The Iowa Attorney Generals office has also set up a state -specific website, which may be found at:
www. iowaattorneygeneral. gov/about-us/opio id -settlement -information.
HOW DO YOU PARTICIPATE IN THE SETTLEMENTS?
You must go to the national settlement website to register to receive in the coming weeks and months the
documentation your subdivision will need to participate in the Settlements (if your subdivision is eligible).
All required documentation must be executed and submitted electronically through the website and must
be executed using the "DocuSign" service. As part of the registration process, your subdivision will need to
identify, and provide the email address for, the individual who will be authorized to sign formal and binding
documents on behalf of your subdivision.
Your unique Subdivision Registration Code to use to register is: RKDGVW
HOW WILL SETTLEMENT FUNDS BE ALLOCATED IN EACH ,STATE?
The settlement funds are first divided among the participating states according to a formula developed by the
Attorneys General that considers population and the severity of harm caused by the opioid epidemic in each
participating state. Each state's share of the abatement funds is then further allocated within each state according
to agreement between the state and its subdivisions, applicable state allocation legislation, or, in the absence of
these, the default provisions in the agreements.
Many states have or are in the process of reaching an agreement on how to allocate abatement funds within the
states. Allocation agreements/legislation and other information about Iowa's allocation agreement or legislation
can be found on the national settlement website. The allocation section of the website will be supplemented as
more intra-state allocation arrangements are finalized. Iowa's state -specific website will be updated as well.,
In reviewing allocation information, please note that while all subdivisions may participate in the Settlements,
not all subdivisions are eligible to receive direct payments. To promote efficiency in the use of abatement funds
and avoid administratively burdensome disbursements that would be too small to add a meaningful abatement
response, certain smaller subdivisions do not automatically receive a direct allocation. However, participation by
such subdivisions will help maximize the arnount of abatement funds being paid in the Settlements, including
those going to counties, cities, parishes, and other larger subdivisions in their communities.
12
To detenmine your eligibility to receive, directly or indirectly, any of the funds allocated to your state
should you elect to participate in the settlements in which your state participates, you should first visit
https://nationalopioidsettlement.com/ to determine if your state has entered into a state -subdivision agreement
or has an allocation statute and/or a statutory trust. If so, then the terns of the state -subdivision agreement,
allocation statute, and/or statutory trust (as applicable) will govern your eligibility to receive funds directly or
indirectly from the share that is allocated to your state under the national settlement agreements. In some states
there will be a proposed state -subdivision agreement that is in the process of being adopted by subdivisions. Any
questions concerning the status or terns of the state -subdivision agreement, allocation statute, and/or statutory
trust in your state, if applicable, can be directed to the Attorney General's Office.
You may be contacted by the Attorney General's Office with additional information regarding the allocation of
settlement funds in Iowa. Subdivisions with representation can expect information from their attorneys as well.
We encourage you to review all materials and to follow up with any questions. The terns of these Settlements
are complex and we want to be sure you have all the information you need to make your participation decision.
WHY YOU SHOULD PARTICIPATE
A vast majority of states have joined the Settlements and attorneys for many subdivisions have already announced
support for them. For example, the Plaintiffs' Executive Committee, charged with leading the litigation on behalf
of more than 3,000 cities, counties and others against the opioid industry, and consolidated in the national multi -
district litigation ("MDL") pending before Judge Dan Aaron Poister in the Northern District of Ohio, recommends
participation in these Settlements.
Subdivision participation is strongly encouraged, for the following reasons:
First, the amounts to be paid under the Settlements, while insufficient to abate the epidemic fully, will allow state
and local governments to commence with meaningful change designed to curb opioid addiction, overdose and
death;
Second, time is of the essence. The opioid epidemic continues to devastate communities around the country and
it is critical that the funds begin to flow to allow governments to address the epidemic in their communities as
soon as possible;
Third, if there is not sufficient subdivision participation in these proposed Settlements, the Settlements will not
be finalized, the important business practice changes will not be implemented, the billions of dollars in abatement
funds will not flow to communities, and more than 3,000 cases may be sent back to their home courts for trial,
which will take many years;
Fourth, the extent of participation also will determine how much money each state and its local subdivisions will
receive because approximately half of the abatement funds are in the form of "incentive payments," i.e., the higher
the participation of subdivisions in a state, the greater the amount of settlement funds that flow into that state;
Fifth, you ]mow first-hand the effects of the opioid epidemic on your community, Funds from these Settlements
will be used to commence abatement of the crisis and provide relief to your citizens while litigation and settlement
discussions proceed against numerous other defendants in the opioid industry; and
Sixth, because pills do notrespect boundaries, the opioid epidemic is a national crisis that needs a national solution.
NEXT STEPS
These Settlements require that you take affirmative steps to "opt in" to the Settlements. If you do not act, you
will not receive any settlement funds and you will not contribute to reaching the participation thresholds that will
deliver the maximum amount of abatement funds to your state.
First, register your subdivision on the national settlement website so that information and documents required to
participate can be sent to you. You will need the email address of the person who will be authorized to sign on
behalf of your subdivision. This is the only action item needed at this time.
6
Second, have your authorizing person(s) or body begin to review the materials on the websites concerning the
settlement agreement terms, allocation and other matters. Develop a list of questions for your counsel or the
Attorney General's Office, fn the very near future, your subdivision will need to begin the process of deciding
whether to participate in the proposed Settlements and subdivisions are encouraged to work through this process
well before the January 2, 2022 deadline to be an initial participating subdivision. Again, the Attorney General's
Office, your counsel, and other contacts within the state are available to discuss the specifics of the Settlements
within your state and we encourage you to discuss the terms and benefits of the Settlements with them.
Third, monitor your email for further communications, which will include a Participation Agreement, Release,
(where applicable) a model Resolution, and instructions on executing and submitting electronically using
DocuSign.
We urge you to view the national settlement website and Iowa's state -specific website at your earliest convenience.
Information and documents regarding the national Settlements and your state allocation can be found on the
settlement website at https://Dationalopioidsettlement.cum.
For further information, please contact Amy Licht at Amy.licht@ag.iowa.gcv or Mary Peterson at
Mary.peterson@ag.iowa.gov or (515) 281-5926.
Prepared by Crenna Brumwell. Eso., 300 Main St., Ste. 330 Dubuque IA 52001-6944 (563) 583-4113
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 2-22
ENDORSING CITY OF DUBUQUE OPTING IN TO OPIOID LITIGATION SETTLEMENT
AND DESIGNATING CITY ATTORNEY AS RECIPIENT OF NOTICES AND
SIGNATORY ON NECESSARY DOCUMENTS
Whereas, sixty-six (66) Iowa Counties and the Iowa Attorney General's Office
brought lawsuits against the pharmaceutical manufacturers and distributors of
prescription opioids over their role in creating the opioid epidemic; and
Whereas, four (4) companies have proposed a nationwide settlement of those
cases, which are:
Distributors
McKesson,
Cardinal Health,
Amerisource Bergen.
Manufacturer
Jannsen Pharmaceuticals, Inc. / Johnson & Johnson
and;
Whereas, the amount of money that can be brought into Iowa depends on how
many counties and cities (over 10,000 people in population) sign on to the settlement;
and
Whereas, there is no cost to the City to participate, the City could participate
whether or not the City was part of the original lawsuits, and participation will result in the
City receiving funds as part of the settlement; and
Whereas, in order to participate, the City must provide signed participation forms
in order to participate and be able to receive a portion of settlement funds.
Whereas, the City Council must designate someone to receive notices and to sign
any necessary documentation to facilitate participation in the settlements; and
Whereas, the practical recipient and designee for signing necessary legal
documents is the City Attorney.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque opts in to the pending settlement of national
opioid litigation involving Distributors McKesson, Cardinal Health, and Amerisource
Bergen and Manufacturer Jannsen Pharmaceuticals, Inc./Johnson & Johnson.
Section 2. The City Attorney is hereby designated as the recipient for any
notices related to the pending settlements and is hereby authorized to sign any
documents necessary to facilitate settlement participation on behalf of the City of
Dubuque.
Passed, approved and adopted this 3rd day of January, 2022.
Attest:
a n'ne //` &ou
Adrienne N. Breitfelder, City Clerk