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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
OFFICE OF CITY ATTORNEY
DATE: MARCH 24, 2026
FROM: OFFICE OF THE CITY ATTORNEY
SUBJECT: AUTHORIZE PARTICIPATION IN ADDITIONAL
SETTLEMENTS IN OPIOID LITIGATION
ATTACHMENT (Y/N): NO ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion (1) authorize participation in additional proposed opioid litigation settlements with six regional distributors/dispensers (Associated Pharmacies, Inc. and American Associated Pharmacies, J M Smith Corporation, Louisiana Wholesale Drug Company, Inc., Morris and Dickson Co., North Carolina Mutual Wholesale Drug Company, Inc., and United Natural Foods, Inc. and its subsidiaries SuperValu and Advantage Logistics)(collectively the “Remnant Defendants”), acceptance of the anticipated allocation plans, and direct receipt of the settlement funds; and (2) authorize the City Attorney to effectuate the City’s acceptance of the settlements by executing participation agreements and any related documentation necessary to complete the settlements.
DISCUSSION:
In 2019, the City Council authorized the City Attorney’s Office to join other public entities in litigation against the manufacturers and distributors of prescription opiates that have contributed to the ongoing opioid epidemic. The case was initiated in California, and later consolidated with national multi-district litigation (“MDL”) pending before a federal judge in the Northern District of Ohio. Multiple California public entity plaintiffs, including the City, are represented in the MDL by Robins Kaplan LLP and Andrews & Thornton.
The Council subsequently authorized the City’s participation in agreements to resolve claims against the following defendants in the litigation: 1. Three large opioid distributors (McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation) (2021); 2. Opioid manufacturer Janssen Pharmaceuticals (2021); 3. Five additional entities (Teva, Allergan, CVS, Walgreens, and Walmart) (2023); 4. Purdue Pharma L.P., certain of its affiliates and the Sackler family (2025); and 5. Opioid manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (2025). All settlement funds must be used for approved opioid epidemic abatement expenditures, and to date the City has received approximately $6.5 million in settlement funds.
Authorize Participation in Additional Settlements in Opioid Litigation March 24, 2026
Recently, new proposed national opioid settlements have been reached with the Remnant Defendants. If effectuated, the proposed settlements will result in these defendants paying a combined $97,625,000 in cash for purposes of abating the opioid epidemic, for which the City would receive a one-time payment based on allocation agreements that are contingent on factors including the number of public entities that elect to participate in the settlements.
If the City elects to participate in these new settlements, it can choose whether to receive its allocated funds directly, or have the funds directed to the county for use on opioid abatement activities. Consistent with prior Council direction, we seek authorization for the City’s direct receipt of the settlement funds.
As with prior opioid settlements, the funds received from these settlements can only be used for approved abatement uses, such as opioid abuse treatment services, services for opioid addicted pregnant people, opioid treatment for incarcerated people, etc. The deadline to participate in these settlements is May 4, 2026.
IMPACT ON BUDGET:
Eligible program costs in the Housing & Community Development and/or Police Departments will be funded by the settlement revenues. It is expected that the departments will have sufficient appropriation to absorb applicable expenses.
Respectfully submitted,
Robert Fabela
City Attorney