Agenda 01-18-22; 8-a - Minutes - Laserfiche WebLink

Browse Search

25 1 b. Opt-in to the National Settlement with Janssen and National Distributors 2 3 The Board considered entering the national settlement as previously approved by the 4 Board of Commissioners in Closed Session. 5 6 BACKGROUND: 7 As previously reported to the Board of Commissioners, the County's national attorneys have 8 been negotiating with multiple defendants in the national opioid litigation in order to reach a 9 settlement. There are two proposed nationwide settlement agreements ("Settlements") that 10 have been reached that will resolve all opioid litigation brought by states and local political 11 subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal Health, 12 and AmerisourceBergen ("Distributors"), and one manufacturer, Janssen Pharmaceuticals, Inc., 13 and its parent company Johnson & Johnson (collectively, "Janssen"). This leaves open 14 litigation against numerous other and generally smaller corporate defendants. 15 16 The proposed Settlements require the Distributors and Janssen to pay billions of dollars to 17 abate the opioid epidemic. Specifically, the Settlements require the Distributors to pay up to $21 18 billion over 18 years and Janssen to pay up to $5 billion over no more than 9 years, for a total of 19 $26 billion (the "Settlement Amount"). Of the Settlement Amount, approximately $22.7 billion is 20 earmarked for use by participating states and subdivisions to remediate and abate the impacts 21 of the opioid crisis. 22 23 The Settlements also contain injunctive relief provisions governing the opioid marketing, sale 24 and distribution practices at the heart of the states' and subdivisions' lawsuits and further 25 require the Distributors to implement additional safeguards to prevent diversion of prescription 26 opioids. 27 28 Each of the proposed Settlements has two key participation steps. First, each state decides 29 whether to participate in the Settlements. North Carolina has joined both Settlements. Second, 30 the subdivisions within each participating state must then decide whether to participate in the 31 Settlements. The Board of Commissioners has approved participation in closed session and 32 this action is to formally enter the settlement. 33 34 By formally entering the settlement and executing the attached documents, Orange County will 35 release the Distributors and Janssen from further liability related to opioid impacts in Orange 36 County and the County will gain access to the settlement funds allotted to North Carolina. 37 38 John Roberts, County Attorney, reviewed the background information for the item, and 39 said this is something the Board previously tentatively approved in closed session. He said the 40 BOCC was previously advised as the litigation progressed, and authorized him to communicate 41 to the national attorneys that Orange County was willing to participate in the settlement. He said 42 in open session, the Board approved a memorandum of agreement with the state on how to 43 divide up the settlement and bankruptcy funds for the defendants. He said the settlement 44 agreement has a little over $22 billion from the defendants that are settling this particular 45 litigation that is going to be governed by the memorandum of agreement with the state. He said 46 funds from bankruptcies of defendants will also be governed by the memorandum of agreement 47 with the state. He said 80% of the funds will go directly to local governments, and will come to 48 the county over the next 18 years. He said the Board is being asked to sign the participation 49 agreements, which will formally enter Orange County into the settlement agreement. 50 Commissioner Greene asked if the county and Chapel Hill will be entitled to 85% rather 51 than 80% for signing before October 1St