Title
Consider a memorandum/resolution authorizing participation in the Global Opioid Settlement and adopting the Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet.
Summary
DATE: November 2, 2021
TO: Kent Cagle, City Manager
FROM: Traci Briggs, City Attorney
SUBJECT: Authorizing participation in the Global Opioid Settlement and adopting the Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet
BACKGROUND AND FINDINGS:
On July 23, 2021, Texas Attorney General Paxton announced that Texas, along with a broad coalition of states and subdivisions, had reached final agreements with four companies to resolve legal claims for their role in the opioid crisis. One agreement is with opioid manufacturer Johnson & Johnson. The other is with three (3) major pharmaceutical distributors: AmerisourceBergen, Cardinal Health and McKesson.
Both settlements are a combined $26 billion, with payments over 18 years. Funding will be distributed to states according to the allocation agreement reached among the various Attorneys General. Texas could receive as much as $1.5 billion, being $1.17 billion from distributors and $268 million from Johnson & Johnson. Distribution within Texas will be handled through the Texas Term Sheet, an intrastate agreement between the state and litigating subdivisions.
Both agreements also contain industry-changing injunctive terms. The distributors will be subject to more oversight and accountability, including an independent monitor to prevent deliveries of opioids to pharmacies where diversion and misuse occur. They will be required to establish and fund an independent clearinghouse to track opioid distribution nationwide and flag suspicious orders. Johnson & Johnson will be prohibited from selling or promoting opioids.
To participate, the City of Killeen must adopt the attached Texas Term Sheet, sign the subdi...
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