To: Board of County Commissioners
From: Joshua Freeman, Director of Administration
title
RE: Closed Session to discuss trial or settlement strategy with manufacturer defendants Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus 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 manufacturer defendants Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus 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:
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; and
WHEREAS the following entities:
1. Alvogen Inc.,
2. Amneal Pharmaceuticals, Inc.,
3. Apotex Inc.,
4. Hikma Pharmaceuticals USA, Inc.,
5. Indivior Inc.,
6. Mylan Pharmaceuticals Inc.,
7. Sun Pharmaceutical Industries, Inc., and
8. Zydus Pharmaceuticals, Inc.,
(“Settling Defendants”) have negotiated proposed national settlement agreements (“Proposed Settlements”) 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 Proposed Settlements contain significant equitable and monetary relief, including:
1. An agreement to pay (a) $18,680,162 in a single year by Alvogen Inc.; (b) $71,751,010 over ten years by Amneal Pharmaceuticals, Inc.; (c) $63,682,369 in a single year by Apotex Inc.; (d) $95,818,293 over one to four years by Hikma Pharmaceuticals USA, Inc.; (e) $38,022,450 over four years by Indivior Inc.; (f) $284,447,916 over nine years by Mylan Pharmaceuticals Inc.; (g) $30,992,087 over one to four years by Sun Pharmaceutical Industries, Inc.; and (h) $14,859,220 in a single year by Zydus Pharmaceuticals, Inc. The bulk of each of these payments will be dedicated to funding abatement and prevention strategies associated with the opioids public nuisance;
2. In addition to these abatement payments, several of the settlements allow states to receive free pharmaceutical products or cash in lieu of this product;
3. Additionally, seven of the companies (not including Indivior) are prohibited from promoting or marketing opioids and opioid products, making or selling any product that contains more than 40 mg of oxycodone per pill, and are required to put in place a monitoring and reporting system for suspicious orders; and
4. Indivior has agreed to not manufacture or sell opioid products for the next 10 years, but it will be able to continue marketing and selling medications to treat opioid use disorder; 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 from the Settling Defendants on a 50/50 basis to:
1. Local Governments who have elected to participate in the settlements with the Settling Defendants; 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 Participation Agreements for the Master Settlement Agreements with: (1) Alvogen Inc.; (2) Amneal Pharmaceuticals, Inc.; (3) Apotex Inc.; (4) Hikma Pharmaceuticals USA, Inc.; (5) Indivior Inc.; (6) Mylan Pharmaceuticals Inc.; (7) Sun Pharmaceutical Industries, Inc.; and (8) Zydus Pharmaceuticals, Inc., each of which are listed and available to the public at <https://nationalopioidsettlement.com/additional-settlements/>, with specimen copies of the material terms of the participation agreements being attached in one combined PDF 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 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)