CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: CONSENT CALENDAR Account Number: 10-1711 File ID: 25-10470 TO: City Council
FROM: Prasanna W. Rasiah, City Attorney
PREPARED BY: City Attorney's Office
MEETING DATE: October 06, 2025
SUBJECT:
Participation in National Opioid Settlement Agreement — Approval RECOMMENDATION:
Approve the City’s participation in a no-cost opioid settlement agreement with Mylan and authorize the City Attorney to execute documents confirming the City’s participation and electing to have the settlement funds be provided directly to the City of San Mateo.
BACKGROUND:
On September 15, 2025, the City Council approved participation in opioid settlement agreements with Purdue Pharma, Alvogen, Amneal, Apotex, Hikma, Indivior, Sun and Zydus. This staff report requests participation in a settlement with Mylan, another opioid manufacturer, that was inadvertently omitted from the September 15 report to the Council.
Over the last several years, a number of nationwide litigation matters have been filed against manufacturers, distributors, and retailers of opioids. The allegations in these lawsuits have generally been that the defendants were complicit in the increasing problem of opioid addiction in the United States, and that they knew or should have known that the products they made or sold were being misused.
On December 6, 2021, the City Council first authorized the City Attorney to take all necessary steps and execute appropriate documents to participate in opioid settlement agreements with three opioid distributors – Cardinal Health, McKesson, and AmerisourceBergen (hereinafter, the “Distributors”) and the opioid manufacturer Janssen Pharmaceuticals, Inc., which is owned by Johnson and Johnson (collectively, “J&J”), and agree to implementing agreements. The City later joined settlement agreements involving Teva, Allergan, Walmart, CVS, Walgreens, and Purdue, among other entities.
The State of California has also come to a proposed settlement amount of $290 million with the opioid manufacturer Mylan. Like the other opioid settlements, local government support and sign-on are required to maximize the amount coming to our communities and eligible cities may elect to receive direct payment or have their allocated share go to the county in which they are located.
The amount the City will receive from these settlements is multi-factored and dependent on how many local agencies participate in the settlements. As an example, in 2022, the City Council authorized participation in a settlement agreement with J&J in the approximate amount of $820,000. From that settlement, the City was distributed approximately $28,000.
Signing the participation agreement involving this opioid manufacturer will help direct settlement funds towards opioid mitigation efforts locally. If the City opts into the settlements, it must release its claims against all of these entities. The deadline to join this settlement with Mylan is October 8, 2025.
If the City does not sign the participation agreement, then the funds will go to the State, but the total amount the State
CITY OF SAN MATEO
receives may be reduced since it is based on the number of cities and counties that participate. By not opting in, the City preserves the ability to litigate against the opioid distributors and manufacturers.
These funds will go to the City if it joins the settlement and opts for direct payment. If the City joins the settlement but does not opt for direct payment, those funds will go to San Mateo County. Funds going directly to participating states and subdivisions must be used for pre-approved purposes designed to help abate the opioid epidemic. These include a wide range of intervention, treatment, education, and recovery services. If the City receives direct payment it is obligated to report on the use of the funds, which must be used primarily for opioid abatement. The funds received by the City to date have been used to offset the cost of a mental health clinician at SMPD. The clinician accompanies sworn police officers on calls for service involving individuals experiencing a mental health crisis because a significant number of these calls involve crises related to substance abuse, including opioids.
BUDGET IMPACT:
There is no immediate budget impact for taking this action as it involves a decision whether to participate in a settlement agreement. Once the number of participating cities and counties is determined, a settlement administrator will calculate and distribute the settlement payment to the City. During fiscal year 24/25, the City received $186,141 in opioid payments from various settlement agreements in which the City Council previously authorized participation.
ENVIRONMENTAL DETERMINATION:
This proposed action is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
None
STAFF CONTACT
Prasanna W. Rasiah, City Attorney
[email protected]
(650) 522-7020