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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 18, 2024 <br /> Action Agenda <br /> Item No. 8-p <br /> SUBJECT: Opioid Litigation Settlement Approval — Kroger <br /> DEPARTMENT: County Attorney <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> John Roberts, County Attorney, 245- <br /> 2318 <br /> PURPOSE: To approve opting into a settlement with Kroger and its subsidiaries in the national <br /> opioid case. <br /> BACKGROUND: In 2018 the Board of Commissioners authorized Orange County's participation <br /> in national litigation related to the nationwide opioid epidemic. In 2021 the Board of <br /> Commissioners entered a Memorandum of Agreement (MOA) with the State related to the <br /> disbursement of funds. <br /> The national litigation has resulted in a $26 billion settlement with the four (4) largest corporate <br /> defendants with $750 million going to North Carolina, of which Orange County is receiving up to <br /> $6.8 million. There have also been several bankruptcies and other smaller settlements resulting <br /> in funds going to North Carolina of which Orange County also receives a share. Defendant <br /> Kroger is now prepared to settle claims against it for $1 .2 billion. These settlement proceeds <br /> will only flow into the states Kroger operated in, as opposed to all states and territories, and will <br /> be paid out over 11 years. Although this settlement amount is relatively small in comparison to <br /> some of the prior settlements, Orange County will receive a share of these funds. <br /> Funds received pursuant to this settlement are subject to the terms of the MOA and the <br /> expenditure of those funds is generally limited to opioid impact mitigation. The national <br /> attorneys recommend opting into the settlement. <br /> FINANCIAL IMPACT: As noted above opting into the settlement will result in additional opioid <br /> settlement funds to Orange County. The State estimates the County will receive approximately <br /> $360,270. <br /> ENVIRONMENTAL IMPACT: There is no Orange County Environmental impact associated <br /> with this declaration. <br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br /> this item: <br /> • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND <br /> INEQUITY <br />