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HomeMy WebLinkAboutResolution No. 7045 9 RESOLUTION NO. 7045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS AUTHORIZING THE CITY'S PARTICIPATION IN THE PROPOSED SETTLEMENT OF OPIOD-RELATED CLAIMS AGAINST SIX REGIONAL DISTRIBUTORS/DISPENSER DEFENDANTS, AGREE TO THE TERMS OF THE RELATED STATE-SUBDIVISION AGREEMENT, AND AUTHORIZE ENTRY INTO THE RELATED STATE-SUBDIVISION AGREEMENT AND OTHER NECESSARY DOCUMENTS WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation ("MDL") being pursued by numerous public entity plaintiffs against the manufacturers and distributors of various opioids based on the allegation that the defendants' unlawful conduct caused the opioid epidemic; and WHEREAS a proposed nationwide tentative settlement was reached with six regional distributors/dispenser defendants: Associated Pharmacies, Inc. (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (each individually, a "Remnant Defendant," and, collectively, the "Six Remnant Defendants") ;and WHEREAS, The Six Remnant Defendants shall be referred in this Resolution as "Settling Defendants"; and WHEREAS, as part of the settlement with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlement in exchange for a release of the Settling Defendants; and WHEREAS, copies of the proposed terms of those proposed nationwide settlement have been set forth in the Settlement Agreement with the Settling Defendants; and WHEREAS, copies of the Settlement Agreement have been provided to the City Council with this Resolution; and WHEREAS, the Settlement Agreement provides, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreement ("California Opioid Funds"); and WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General's Office ("AGO") as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California State- Subdivision Agreement Regarding Distribution and Use of Settlement Funds ("Allocation Agreements") from the settlements with the Settling Defendant; and WHEREAS, copies of the Allocation Agreement for all of the settlement with the Settling Defendant have been provided with this Resolution; and WHEREAS, under the Settlement Agreement, certain local subdivisions that did not file a lawsuit against the Settling Defendants may qualify to participate in the settlements and obtain funds from the Abatement Account Fund; and WHEREAS, the City is eligible to participate in the Settlement and become a CA Participating Subdivision; and 10 WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and WHEREAS, it the intent of this Resolution is to authorize the City to enter into the Settlement Agreement with the Settling Defendants by executing the Participation Agreement and to enter into the Allocation Agreement by executing the signature pages to those agreements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cypress hereby approves and authorizes the City Manager to execute all documents required to settle and release the City's claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreement, Allocation Agreement and all exhibits thereto to be paid through the County of Orange. BE IT FURTHER RESOLVED that all actions heretofore taken by the City Council of the City of Cypress and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved. PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 28 day of April, 2026. MAYOR OF THE CITY OF CYPRESS ATTEST: 1/1/404-e-4(.4,-_d( CITY CLERK OF THE-CITY OF CYPRESS STATE OF CALIFORNIA } COUNTY OF ORANGE } SS I, LISA BERGLUND, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of said City Council held on the 28t" day of April, 2026, by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Chang, Peat, Burke, Medrano, Strong Carnahan NOES: 0 COUNCIL MEMBERS: CITY CLERK OUTHE CITY OF CYPRESS