Agenda Date: 08/19/2025
Subject:
Title
Motion authorizing the city to enter into settlement agreements with Purdue Pharma, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Reid Betzing, City Attorney |
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Presentations: |
N/A |
PURPOSE:
The purpose of this is motion is to authorize the City Attorney to enter into settlement agreements with additional opioids defendants.
SUMMARY:
In October of 2021, city council entered into the Colorado Opioids Settlement Memorandum of Understanding (“MOU”). The purpose of the MOU was to provide a framework for distributing and sharing settlement proceeds from what is generally referred to as a class action lawsuit, but more specifically the multi-district litigation (“MDL”) In Re: National Prescription Opiate Litigation, MDL 2804 of which the city was a part of.
At the time, national settlements had been reached with the 3 largest opioid distributors (McKesson, Cardinal Health, and Amerisource Bergen) as well as opioid manufacturer Johnson & Johnson to help resolve claims by state and local governments that these companies contributed to the opioid epidemic. The claims settled included those raised by local governments in the national MDL.
Under the MOU settlement proceeds will be distributed 10% directly to the state, 20% to local governments, 60% to regions, and 10% to specific abatement infrastructure projects. Approved uses of these funds focus on abatement strategies including prevention, treatment, recovery, criminal justice, education, and harm reduction. It was further expected that the MOU would also be used for future settlements with other opioid defendants in the future.
The first round of settlements called for the city to obtain approximately $600,000 in settlement proceeds over a period of 18 years.
The second round of settlements was with:
• Teva Pharmaceutical Industries, Ltd for $107,674.42 payable over 13 years;
• Allergan Finance LLC/Allergan Limited for 64,147.29 payable over 7 years;
• Walmart, Inc. for $80,654.96 payable over 6 years;
• CVS Health Corporation/CVS Pharmacy, Inc. for $142,428.34 payable over 10 years; and
• Walgreens Co. for $154,875.90 payable over 14 years.
Subsequent settlements have been finalized with other defendants. For consideration tonight would be authorizing settlements with Purdue Pharma, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus.
The exact amounts are determined based upon other participation rates.
The city is an active member in the regional opioid discussions with former Councilperson Rydin serving as chair of the Region 9 Opioid Council. It is anticipated that a study session be scheduled early next year to discuss how these funds are being used both regionally and locally.
ALTERNATIVES:
The city could not accept the settlements. This would allow the city to pursue litigation against these defendants on its own accord.
PROPOSED MOTION:
Proposed Motion
I move to authorize the city to enter into settlement agreements with Purdue Pharma, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus.