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FEBRUARY 16, 2023
CLOSED SESSION REPORT OF FINAL ACTION
Date of Meeting: Thursday, February 16, 2023
Affirmative Litigation Negotiations
NAME OF ACTION:
The People of the State of California, acting by and through Santa Clara County Counsel James R. Williams, Orange County District Attorney Tony Rackauckas, Los Angeles County Counsel Mary C. Wickham, and Oakland City Attorney Barbara J. Parker v. Purdue Pharma L.P.; Purdue Pharma Inc.; The Purdue Frederick Company, Inc.; Teva Pharmaceutical Industries, Ltd; Teva Pharmaceuticals USA, Inc.; Cephalon, Inc.; Johnson & Johnson; Janssen Pharmaceuticals, Inc.; Ortho -Mcneil-Janssen Pharmaceuticals, Inc. n/k/a Janssen Pharmaceuticals, Inc.; Janssen Pharmaceutica, Inc. n/k/a Janssen Orange County Superior Court Case No. 30-2014-00725287-CU-BT-CXC
In re National Prescription Opiate Litigation
MDL Master Docket No. 1:17-MD-2804
This matter is listed as Item No. 1(d) on the Closed Session Agenda:
The council authorized the City Attorney to: release the City’s potential claims as necessary to join the national Walgreens Settlement Agreement, the national Walmart Settlement Agreement, the national CVS Settlement Agreement, and their accompanying Cali fornia State -Subdivision Agreements Regarding Distribution and Use of Settlement Funds . The council also authorized the City Attorney to: release the City’s potential claims as necessary to join the national Teva Settlement Agreement, the national Allergan Settlement Agreement, and their accompanying California State - Subdivision Agreements Regarding Distribution and Use of Settlement Funds.
These cases arose out of incidents (the “opioid crisis”) occurring in Oakland, across the state of California, and nationally.
FACTS/ISSUES:
In May 2014, the Santa Clara County Counsel’s Office and the Orange County District Attorney’s Office filed the first lawsuit in the nation brought by government entities against major opioid manufacturers (“Manu facturers”) for the companies’ roles in creating and perpetuating the opioid crisis. In 2018, the Oakland City Attorney and the Los Angeles County Counsel, in the name of the People of the State of California, joined that lawsuit. The lawsuit was and is di stinct from the settlements before the Council in this Closed Session Report, but the City Attorney’s participation in that lawsuit has put the City of Oakland in its current position to authorize the City Attorney to accept the terms of either or both of the national opioid settlements as a “litigating entity.” The national Walgreens Settlement Agreement, the national Walmart Settlement Agreement, the national CVS Settlement Agreement, the national Teva Settlement Agreement, and the national Allergan Sett lement Agreement serve to settle federal litigation by innumerable state and local governments across the country challenging the conduct of a wide variety of opioid industry actors for the roles they played in the opioid crisis . Separate from any state co urt proceedings, those cases were consolidated years ago into a single “Multi-District Litigation” (“MDL”) proceeding, and these settlements will resolve all relevant claims in the MDL 2804. 2 3240873v1
The five settlements at issue in this closed session are structured in a “tiered” fashion: each state must decide to participate, and once it does, its local subdivisions (e.g., counties, cities) decide whether to participate. California has decided to participate in all five settlements. Local participation is then subject to a “State -Subdivision Allocation Agreements,” or a division of settlement funds between the state and its local governments. To participate in the national agreement, a local government in California must also participate in the State Allocation Agreement. Because the Oakland City Attorney sued opioid defendants, Oakland is eligible to participate in all five settlements as a “litigating entity” and to therefore receive the maximum settlement amounts available to the City under both agreements. Local governments have until April 18, 2023 to release their claims and join either or both settlements.
Present:
Motion Made by: Councilmember Kaplan
Motion Seconded by: Councilmember Reid
AYES: Fife, Gallo, Jenkins, Kalb, Kaplan, Ramachandran, Reid, and President Fortunato Bas= 6 NOES: Fife, Gallo, Jenkins, Kalb, Kaplan, Ramachandran, Reid, and President Fortunato Bas= ABSENT: Fife, Gallo, Jenkins, Kalb, Kaplan, Ramachandran, Reid, and President Fortunato Bas= 2 ABSTENTIONS: Fife, Gallo, Jenkins, Kalb, Kaplan, Ramachandran, Reid, and President Fortunato Bas=