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HomeMy WebLinkAboutAgenda 09-04-2025; 12-6 - Information Item - Memorandum - Settlement Report – MDL 2804 { was lye ORANGE COUNTY � fr P.O. BOX 8181 Office of the County HILLSBOROUGH, NC 27278 Attorney TO: Board of County Commissioners Jamezetta Bedford, Chair Jean Hamilton, Vice Chair Marilyn Carter Amy Fowler Sally Greene Earl McKee Phyllis Portie-Ascott FROM: John Roberts, County Attorney DATE: September 4, 2025 RE: Settlement Report— MDL 2804 The purpose of this memorandum is to report the terms of multiple settlements related to the National Opioid Litigation. The National Opioid Litigation is a class-type action that has been ongoing since 2017. Multiple defendants remain and Orange County continues to participate as a plaintiff. North Carolina General Statute 143-318.11(a)(3) provides that when the settlement of litigation is authorized or considered in closed session the terms of the settlement will be entered into the minutes of the public body. As a member of a defined class of plaintiffs Orange County is not making decisions regarding the direction of the litigation, which is reserved to the national counsel and certain class representatives. Orange County's decisions are related to whether to continue to participate in the litigation and whether to accept settlements with certain defendants as recommended by the national litigation counsel. The Board of Commissioners has received multiple reports during closed session. Orange County has agreed to settlements with multiple defendants some of which involve bankruptcies. AmerisourceBergen, Cardinal Health, McKesson, Janssen, Mallinckrodt, McKinsey and Company, Teva, Allergan, Endo, CVS, Walgreens, Walmart, and Kroger Co., have settled all claims for an amount in excess of 46 billion dollars. The Court has approved these settlements and the payments will continue through approximately 2038. Additionally, settlements have been entered but not yet finalized with multiple additional defendants including Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Purdue, Sun Pharmaceuticals, Zydus, and the Sacklers. This group of defendants has agreed to settle all claims for approximately 9.2 billion dollars. Payments will continue up to another 15 years after the Court gives final approval of the settlements. These funds are distributable among the more than 2000 plaintiffs. Plaintiffs' shares of these settlements are determined by a formula developed by the plaintiffs' attorneys and approved by the Court and through various intergovernmental agreements. Pursuant to an intergovernmental agreement with the State of North Carolina all funds received by Orange County must be, and are being, used to address the opioid epidemic. A final amount is not yet certain, but Orange County's current share is expected to be in excess of 12.7 million dollars over the full payment term.