Council to take action to approve the National Opioid Settlement involving the "Remnant Defendants" under the National Prescription Opiate Litigation (MDL 2804); authorize the Mayor to approve the exe
Extracted text (via pymupdf)
5759 characters
4.E CITY OF BUCKEYE Regular Council Meeting COUNCIL ACTION REPORT MEETING DATE: 04/21/26 AGENDA ITEM: 4.E. FIN - Six Remnant Defendants National Opioid Settlement DATE PREPARED: 04/20/26 DISTRICT NO.: All STAFF LIAISON: Rob Roach, Grant Program and Procurement Manager, rroach@buckeyeaz.gov, (623) 349-6165 DEPARTMENT: Financial Services AGENDA ITEM TYPE: Consent Agenda Items / New Business ACTION/MOTION: (This language identifies the formal motion to be made by the Council) Council to take action to approve the National Opioid Settlement involving the "Remnant Defendants" under the National Prescription Opiate Litigation (MDL 2804); authorize the Mayor to approve the execution of the Settlement Participation form on behalf of the City; and authorize the Mayor, City Manager, City Attorney, and City Clerk to take the steps necessary to carry out the terms of said Opioid Settlement on behalf of the City of Buckeye. GOALS AND OBJECTIVES FOR THE STRATEGIC PLAN FOCUS AREAS: Innovative and High Performing Organizations SUMMARY PROJECT DESCRIPTION: State and local governments across the country have been litigating against the opioid industry, alleging that the industry utilized unethical and illegal practices with respect to promoting the use of opioids. In December 2020, Council approved the One Arizona Opioid Settlement Memorandum of Understanding (MOU) between the State and Participating Local governments. The MOU served to jointly approach settlement negotiations with the Pharmaceutical Supply Chain Participants. In November 2021, Council approved the One Arizona Opioid Agreement, which establishes Arizona's disbursement of the funds related to a national class action lawsuit against opioid manufacturers and distributors. In December 2022, Council approved the execution and delivery of the National Opioids Distributor Settlement Agreement with three opioid distributors, McKesson, AmerisourceBergen and Cardinal, and the Janssen Settlement Agreement with one manufacturer, Johnson & Johnson. In April 2023, Council approved the execution and delivery of the National Opioids Distributor and Settlement Agreements in the National Settlement(s) for five opioid distributors: Teva, Allergan, Walmart, Walgreens, and CVS. In August 2025, Council approved the execution and delivery of the Purdue Direct Settlement. In August 2025, a new proposed national opioids settlement was reached with eight opioid manufacturers: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus. The settlement is known as the Secondary Manufacturers Settlement. The most recent proposed settlement is the Six Remnant Defendants settlement. There is $97,625,000 available to be distributed in this settlement. The amounts, terms, and conditions of the various past settlements vary widely. The distributions of the settlements are intended to benefit the City of Buckeye and its citizens. Buckeye Police will be using the funds to support the funding of a full-time civilian investigator position regarding opioid incidents and related investigations, and may also be used for treatment, prevention efforts, and education in the Buckeye community related to the opioid crisis. This is an allowable use of funds. The next step in the process is for the Council to approve the submission of the Settlement Participation form. The agreement provides for a complete waiver of any and all past, current and future claims related to opioid use and is essentially a contract of adhesion, as there is no ability to negotiate the terms at the city level, as the State took on that responsibility. If enough political subdivisions participate by submitting the attached Settlement Participation form to the national settlement administrators by April 24, 2026, the settlement will be finalized. The exact amount that will be disbursed and when the disbursement will take place is based on the total number of municipalities throughout the US that sign off on the agreements. Failure to approve and submit Settlement Participation forms for the Six Remnant Defendants by April 24, 2026, will mean the City will not receive any funds from the settlements. To receive these critically needed funds to assist in addressing the opioid crisis in our community, the staff recommends Council approval of submission of the Settlement Participation Form authorizing the City to participate in the opioid settlement. BENEFITS: The distributions of the settlements are intended to benefit the City of Buckeye and its citizens. Previous settlement funds are being used to support the funding of a civilian investigator position regarding opioid and related investigations, as well as used for treatment, prevention efforts, and education in the Buckeye community related to the opioid crisis. This is an allowable use of funds. This new settlement will continue to contribute to these efforts. FUTURE ACTION: Completion and submission of Settlement Participation Form by April 24, 2026. FINANCIAL IMPACT STATEMENT: Funds received from these settlements are being used to fund a full-time employee position that investigates opioid related incidents and may be used for treatment, prevention efforts, and education in the Buckeye community related to the opioid crisis. CURRENT FISCAL YEAR TOTAL COST: It is unknown at this time as to how much the City will receive. BUDGETED: No FISCAL YEAR: 2027 and ongoing until the settlement has been completed. FUND/DEPARTMENT: Police Items related to a project or facility location must include an attached vicinity map for Council Review. ATTACHMENTS: 3471470_participation_form.pdf settlement_overview_six_remnant_defendants.pdf Letter Dated March 6 2026.pdf CAR Recap Summary - Six Remnant Defendants Opioid Settlement.docx