HomeMy WebLinkAboutResolution No. 23-8162 - Authorize CM to Enter Into Settlement Agmts & Auth Entry into State-Subdivisions AgmtsI N :61101 ItIl 11 Eel ki I I
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING THE CITY MANAGER TO ENTER INTO THE SETTLEMENT
AGREEMENTS WITH WALGREENS CO., WALMART, INC., CVS HEALTH
CORPORATION/CVS PHARMACY INC., TEVA PHARMACEUTICAL
INDUSTRIALS LTD., AND ALLERGAN FINANCE LLC/ALLERGAN LIMITED,
AGREE TO THE TERMS OF THE STATE -SUBDIVISION AGREEMENTS, AND
AUTHORIZE ENTRY INTO THE STATE -SUBDIVISION AGREEMENTS WITH
THE ATTORNEY GENE12,4L
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse,
addiction, overdose, and death, forcing the State of California and California counties and cities
to spend billions of dollars each year to address the direct consequences of this crisis; and,
WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a
multiclistrict litigation ("MDL") being pursued by numerous public entity plaintiffs against the
manufacturers and distributors of various opioids based on the allegation that the defendants'
unlawful conduct caused the opioid epidemic; and,
WHEREAS on or about November 14, 2022, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Walmart Inc. ("Walmart"); and,
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Teva Pharmaceutical Industries Ltd. and all
of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint
ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals
USA, Inc., Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis
Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a
Watson Laboratories, Inc. — Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis
Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. — Florida), Actavis South Atlantic LLC,
Warner Chilcott Company LLC, and Watson Laboratories, Inc., and Anda Inc. (collectively,
"Teva"); and,
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Allergan Finance, LLC (f/k/a Actavis, Inc.,
which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc,
which, in turn, was f/k/a Actavis pic)(collectively, "Allergan"); and,
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and CVS Health Corporation and CVS Pharmacy,
Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively,
"CVS"); and,
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Walgreen Co. ("Walgreens"); and,
WHEREAS, CVS, Teva, Walgreens, Walmart, and Allergan shall be referred in this
Resolution as "Settling Defendants"; and
WHEREAS, as part of the settlements with the Settling Defendants, local subdivisions,
including certain cities, that are not plaintiffs in the MDL may participate in the settlements in
exchange for a release of the Settling Defendants; and,
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.-%'ESOLUTION NO.
as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement
Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and,
WHEREAS, it the intent of this Resolution is to authorize the City to enter into the Master
Settlement Agreements with the Settling Defendants by executing the Participation Agreements
and to enter into the Allocation Agreements by executing the signature pages to those
agreements.
THEREFORE, COUNCILOF OF
FOLLOWS:HEREBY RESOLVE AS
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. The City Manager is authorized to settle and release the City's claims
against the Settling Defendants in exchange for the consideration set forth in the Settlement
Agreements and Allocation Agreements, including taking the following measures:
1. The execution of the Participation Agreements with the Settling Defendants and any
and all documents ancillary thereto.
2. The execution of the Proposed California State -Subdivision Agreement Regarding
Distribution and Use of Settlement Funds with the Settling Defendants by executing
the signature pages to those Allocation Agreements.
3. Notify the Settlement Fund Administrator that the City requests a direct payment under
the Allocation Agreements at least 60 days prior to the Payment Date in the Settlement
Agreements.
SECTION 3. The City Manager is authorized to, without further City Council review or
approval, settle and release the City's claims against any other manufacturers and/or distributors
of various opioids based on the allegation that the defendants' unlawful conduct caused the opioid
epidemic ("Future Settling Defendants"), in exchange for consideration set forth in agreements
substantially similar to the Settlement Agreements and Allocation Agreements. This authorization
includes the authority to:
1. Execute any participation agreements with any Future Settling Defendants, and any
and all documents ancillary thereto; and
2. Execute the Proposed California State -Subdivision Agreement Regarding Distribution
and Use of Settlement Funds with any Future Settling Defendants by executing the
signature pages to those Allocation Agreements; and
3. Notify the Settlement Fund Administrator that the City requests a direct payment under
the Allocation Agreements at least 60 days prior to the payment date in any settlement
agreements with Future Settling Defendants.
SECTION 4. CEQA. That the City Council finds this Resolution is not subject to the
California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that
CEQA applies only to projects which have the potential for causing a significant effect on the
environment. Where it can be seen with certainty, as in this case, that there is no possibility that
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the activity in question may have a significant effect on the environment, the activity is not subject
to CEQA.
SECTION 5. Severability. If any provision of this Resolution or the application thereof t"I
any person or circumstance is held invalid, such invalidity shall not affect other provisions ol
applications, and to this end the provisions of this Resolution are declared to be severable.
APPROVED AND ADOPTED this 111h day of April, 2023.
X
CLALiDTA-a FRONWETA, Vayor
MIM"
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the
City of Downey at a Regular meeting held on the 1 1th day of April, 2023, by the following vote, tit
ATES:
Council Members.-
Horn, Sosa, Trujillo, Fromef -
NOES:
Council Members:
None.
ABSENT:
Council Members:
None.
ABSTAIN:
Council Members:
None.
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City Clerk