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February 28, 2023 <br /> <br />3. That the City Manager is authorized to execute and deliver such instruments <br />and documents, and to take such further actions, as may be necessary or desirable in <br />furtherance of the purpose of this Resolution. <br /> <br />4. That this Resolution shall take effect on the date of its adoption.” <br /> <br />Ayes: Barnes, Hugel, Lucas-Burke, Moody, Tillage, Whitaker, Glover <br />Nays: None <br /> <br />23 - 70 - Adoption of a resolution approving the City of Portsmouth’s participation <br />in the proposed settlement of opioid-related claims against Teva, Allergan, <br />Walmart, Walgreens, CVS, and their related corporate entities, and directing the <br />City Manager or her designee to execute the documents necessary to effectuate <br />the City’s participation in the settlements. <br /> <br />Background: <br /> <br /> The City of Portsmouth was one of several Virginia localities to file suit against <br />entities engaged in the manufacture, marketing, promotion, distribution, and dispensing <br />of opioids. <br /> <br /> In 2021 the Commonwealth of Virginia reached a global settlement of claims <br />against many of the opioid entities on behalf of itself and its participating localities, <br />including Portsmouth. The settlement provided for payment of approximately <br />$608,000,000 to the Commonwealth (the “Settlement Funds”) over an 18-year period. <br /> <br /> In order to participate in the Commonwealth’s settlement and receive distributions <br />of a portion of the Settlement Funds, Portsmouth released its claims and entered into a <br />Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of <br />Understanding with the Commonwealth and other localities (the “Settlement MOU”). <br /> <br /> City Council approved the Settlement MOU by Resolution R-21-24 adopted on <br />August 10, 2021. <br /> <br /> Additional global settlements have now been reached with Teva, Allergan, <br />Walmart, Walgreens, and CVS. Under the settlements, the five settling defendants will <br />pay more than $20 billion over the next fifteen years to states and localities. <br /> <br /> Virginia’s share of the new settlement funds will be distributed to the <br />Commonwealth and then by the Commonwealth to the localities through the terms of the <br />existing Settlement MOU. <br /> <br />Discussion: <br /> <br /> To receive funding under the new round of settlements, localities must adopt a <br />resolution approving the settlements and authorizing a release of claims against the <br />settling defendants. <br /> <br /> The City’s class action counsel recommends that the City approve this settlement. <br /> <br /> Under the terms of the Settlement MOU, the City receives regular disbursements <br />of a portion of the Settlement Funds received by the Commonwealth. <br /> <br /> Over the past year, the City has received approximately $500,000 from the prior <br />settlements. With the addition of the new settlements, this funding amount should <br />increase over the next several years. <br /> <br /> The Settlement MOU requires the City to use the Settlement Funds for “Approved <br />Abatement Purposes”, which it defines as: “efforts to treat, prevent, or reduce opioid use <br />disorder or the misuse of opioids or to otherwise abate or remediate the opioid <br />epidemic…”. Specific examples of Approved Abatement Purposes are described in <br />Section (C)(4)(a) through (j) of the Settlement MOU. <br /> <br />Financial impact: <br /> <br /> No local match is required as a condition of the funding. <br /> <br />Recommended Action: <br /> <br /> Adoption of the resolution <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />