HomeMy WebLinkAboutAgenda - 06-18-2024; 8-p - Opioid Litigation Settlement Approval - Kroger 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 18, 2024
Action Agenda
Item No. 8-p
SUBJECT: Opioid Litigation Settlement Approval — Kroger
DEPARTMENT: County Attorney
ATTACHMENT(S): INFORMATION CONTACT:
John Roberts, County Attorney, 245-
2318
PURPOSE: To approve opting into a settlement with Kroger and its subsidiaries in the national
opioid case.
BACKGROUND: In 2018 the Board of Commissioners authorized Orange County's participation
in national litigation related to the nationwide opioid epidemic. In 2021 the Board of
Commissioners entered a Memorandum of Agreement (MOA) with the State related to the
disbursement of funds.
The national litigation has resulted in a $26 billion settlement with the four (4) largest corporate
defendants with $750 million going to North Carolina, of which Orange County is receiving up to
$6.8 million. There have also been several bankruptcies and other smaller settlements resulting
in funds going to North Carolina of which Orange County also receives a share. Defendant
Kroger is now prepared to settle claims against it for $1 .2 billion. These settlement proceeds
will only flow into the states Kroger operated in, as opposed to all states and territories, and will
be paid out over 11 years. Although this settlement amount is relatively small in comparison to
some of the prior settlements, Orange County will receive a share of these funds.
Funds received pursuant to this settlement are subject to the terms of the MOA and the
expenditure of those funds is generally limited to opioid impact mitigation. The national
attorneys recommend opting into the settlement.
FINANCIAL IMPACT: As noted above opting into the settlement will result in additional opioid
settlement funds to Orange County. The State estimates the County will receive approximately
$360,270.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental impact associated
with this declaration.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
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The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or
ethnic background; age; military service; disability; and familial, residential or economic
status.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends the Board consider the settlement and
approve opting into it.