To: Board of County Commissioners
From: Joshua Freeman, Director of Administration
title
RE: Closed Session to discuss trial or settlement strategy with defendant Purdue Pharma L.P. in the matter of County of Genesee v Purdue Pharma L.P., et al, U.S. District Court case no. 17-cv-14074
recommendation
BOARD ACTION REQUESTED:
Closed Session to discuss trial or settlement strategy with defendant Purdue Pharma L.P. in the matter of County of Genesee v Purdue Pharma L.P., et al, U.S. District Court case no. 17-cv-14074
BACKGROUND:
DISCUSSION:
IMPACT ON HUMAN RESOURCES:
IMPACT ON BUDGET:
IMPACT ON FACILITIES:
IMPACT ON TECHNOLOGY:
CONFORMITY TO COUNTY PRIORITIES:
esolution
TO THE HONORABLE CHAIRPERSON AND MEMBERS OF THE GENESEE COUNTY BOARD OF COMMISSIONERS, GENESEE COUNTY, MICHIGAN
LADIES AND GENTLEMEN:
WHEREAS, in 2017, this Board of County Commissioners of Genesee County, Michigan, authorized filing a lawsuit to address the public nuisance that is the Opioid Epidemic, which named, among others, Purdue Pharma L.P. (“Purdue”) and several members of the Sackler family (“Sackler Family Defendants”); and
WHEREAS, Purdue has presented a proposed Bankruptcy Plan, and the Sackler Family Defendants have entered into a Governmental Entity & Shareholder Direct Settlement Agreement (together, the “Purdue/Sackler Settlement”) with the State Attorneys General and a Plaintiff Executive Committee-designated negotiating committee that represents approximately 4,000 local governments that have brought lawsuits similar to Genesee County’s lawsuit; and
WHEREAS, the Purdue/Sackler Settlement will provide significant equitable and monetary relief, including an agreement that (a) the Sackler Family Defendants will pay $6.5 billion over the next 15 years in exchange for a release of claims against them, and (b) the Purdue estate will contribute an amount of approximately $900 million, where the bulk of these payments will be dedicated to funding abatement and prevention strategies associated with the opioids public nuisance; and
WHEREAS, Genesee County, through this Board, previously executed Participation Agreements for the Distributor and Janssen Settlements, as well as the Teva, Allergan, CVS, Walmart, and Walgreens Settlements, which have conferred and continue to confer valuable benefits; and
WHEREAS, Genesee County desires to enter into an allocation method which allocates settlement funds on a 50/50 basis to:
1. Participating Local Governments who have elected to participate in the Purdue/Sackler Settlement; and
2. the State of Michigan.
NOW, THEREFORE, BE IT RESOLVED, that this Board of County Commissioners of Genesee County, Michigan, authorizes the execution of a Participation Agreement for the Purdue/Sackler Settlement, a copy of which is available at the following link: <https://nationalopioidsettlement.com/>, with a specimen copy of the material terms of the participation agreement being attached as Exhibit A to this resolution.
BE IT FURTHER RESOLVED, that this Board also authorizes the execution of a new Michigan State-Subdivision Agreement for Allocation of Opioid Settlement Agreements substantially similar to the proposed agreement attached as Exhibit B to this resolution.
BE IT FURTHER RESOLVED, that this Board also authorizes the Weitz & Luxenberg law firm to vote on Genesee County’s behalf in favor of the Bankruptcy Plan for Purdue.
BE IT FURTHER RESOLVED, that Corporation Counsel is authorized to complete the online settlement registration process, Corporation Counsel is authorized to electronically sign any documents necessary as part of the online process, and the Chairperson of this Board is authorized to sign the Participation Agreements and any other necessary documents.
Attachments (2)