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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 16, 2021 <br /> Action Agenda <br /> Item No. 6-b <br /> SUBJECT: Opt-in to the National Settlement with Janssen and National Distributors <br /> DEPARTMENT: County Attorney <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Distributor Opt-In John Roberts, County Attorney, 245- <br /> Janssen Opt-In 2318 <br /> PURPOSE: To enter the national settlement as previously approved by the Board of <br /> Commissioners in Closed Session. <br /> BACKGROUND: As previously reported to the Board of Commissioners, the County's national <br /> attorneys have been negotiating with multiple defendants in the national opioid litigation in order <br /> to reach a settlement. There are two proposed nationwide settlement agreements <br /> ("Settlements") that have been reached that will resolve all opioid litigation brought by states and <br /> local political subdivisions against the three largest pharmaceutical distributors, McKesson, <br /> Cardinal Health, and AmerisourceBergen ("Distributors"), and one manufacturer, Janssen <br /> Pharmaceuticals, Inc., and its parent company Johnson & Johnson (collectively, "Janssen"). <br /> This leaves open litigation against numerous other and generally smaller corporate defendants. <br /> The proposed Settlements require the Distributors and Janssen to pay billions of dollars to <br /> abate the opioid epidemic. Specifically, the Settlements require the Distributors to pay up to $21 <br /> billion over 18 years and Janssen to pay up to $5 billion over no more than 9 years, for a total of <br /> $26 billion (the "Settlement Amount"). Of the Settlement Amount, approximately $22.7 billion is <br /> earmarked for use by participating states and subdivisions to remediate and abate the impacts <br /> of the opioid crisis. <br /> The Settlements also contain injunctive relief provisions governing the opioid marketing, sale <br /> and distribution practices at the heart of the states' and subdivisions' lawsuits and further require <br /> the Distributors to implement additional safeguards to prevent diversion of prescription opioids. <br /> Each of the proposed Settlements has two key participation steps. First, each state decides <br /> whether to participate in the Settlements. North Carolina has joined both Settlements. Second, <br /> the subdivisions within each participating state must then decide whether to participate in the <br /> Settlements. The Board of Commissioners has approved participation in closed session and <br /> this action is to formally enter the settlement. <br />