Agenda Date: 10/26/2021
Subject:
Title
Resolution 52-2021: Approving the Colorado Opioids Settlement Memorandum of Understanding
Body
Prepared by:
Reid Betzing, City Attorney
PURPOSE:
The purpose of the Colorado Opioids Settlement Memorandum of Understanding (MOU) is to establish a framework for distributing and sharing settlement proceeds from the multi-district litigation ("MDL") In Re: National Prescription Opiate Litigation, MDL 2804.
PRESENTATIONS:
Staff Presenter(s): Reid Betzing, City Attorney
Additional Presenter(s): None
SUMMARY:
National settlements have been reached with the big 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 being settled include those raised by local governments in the national multi-district litigation.
The Colorado Opioids Settlement MOU establishes the framework for distributing and sharing these settlement proceeds throughout Colorado. Local governments and the State prepared the MOU which prioritizes regionalism, collaboration, and abatement. It is expected that this MOU would be used for future settlements with other opioid defendants in the future.
In total, up to approximately $22.8 billion in settlement proceeds will be payable at varying rates to state and local governments nationwide. Colorado's maximum share from these settlements is anticipated to be more than $300 million dollars at varying amounts over 18 years.
Under the proposed 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.
In order for the City of Littleton to obtain a share o...
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