CAR_Recap_Opioid_Settlement_-_Secondary_Manufacturers__smf_rev_09.01.25_.pdf

FINANCE 
 
 
 
                                                           
 
                  
 
530 E. MONROE AVE. • BUCKEYE, AZ • 85326 
WILLIAM KAUPPI • WKAUPPI@BUCKEYEAZ.GOV • BUCKEYEAZ.GOV 
 
National Opioid Settlement with Secondary Manufacturers – Summary Recap 
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 next step in the process is for the Council to ratify, 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 October 8, 2025, 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 U.S. 
that sign off on the agreements.  
Failure to approve and submit Settlement Participation Forms for Purdue by October 8, 2025, 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 ratify the signature on the 
Settlement Participation Form authorizing the city to participate in the opioid settlement. 
 
 Settlement Amount: 
• 
It is unknown how much the city will receive. 
Next Step:  
• 
October 8, 2025, is the deadline to submit Settlement Participation Forms . 
Objectives and Expected Outcomes:  
• 
Funds received from these settlements will be used in our community for treatment, prevention efforts, 
and education related to the opioid crisis. 
Time Period for the Grant: 
• FY 2026