Council to take action on the National Opioids Settlement known as the Purdue Direct Settlement; to ratify the execution of the Settlement Participation Form on behalf of the City; and authorizing the
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2.A CITY OF BUCKEYE Regular Council Meeting COUNCIL ACTION REPORT MEETING DATE: 08/26/25 AGENDA ITEM: 2.A. CA - National Opioid Settlement with Purdue and Sackler. DATE PREPARED: 08/21/25 DISTRICT NO.: STAFF LIAISON: Scott McCoy, City Attorney, smccoy@buckeyeaz.gov, 623-349- 6982 DEPARTMENT: Legal 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 on the National Opioids Settlement known as the Purdue Direct Settlement; to ratify the execution of the Settlement Participation Form on behalf of the City; and authorizing the City to participate in the Opioid Settlement. SUMMARY PROJECT DESCRIPTION: State and local governments across the country have been litigating against the opioid industry alleging 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 manufactures 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 June 2025, a new proposed national opioids settlement was reached with Purdue and the Sackler families. The settlement is known as the Purdue Direct Settlement. The next step in the process is for the Council to approve and submit 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 are essentially contracts 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 September 30, 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 September 30, 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, staff recommends council ratify the signature on the Settlement Participation Form authorizing the city to participate in the opioid settlement. BENEFITS: Funds received from these settlements will be used for treatment, prevention efforts and education in our community related to the opioid crisis. FUTURE ACTION: Completion and submission of Settlement Participation Forms by September 30, 2025. FINANCIAL IMPACT STATEMENT: Funds received from these settlements will be used for treatment, prevention efforts and education in our community related to the opioid crisis. CURRENT FISCAL YEAR TOTAL COST: It is unknown how much the city will receive. BUDGETED: No FISCAL YEAR: 2026 Items related to a project or facility location must include an attached vicinity map for Council Review. ATTACHMENTS: Action_Required_Purdue_Direct_Settlement_-_C (1).pdf