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Consideration of approval of City participation in the National Opioids Secondary Manufacturers Settlement
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Submitted by:
John Ruggini, Finance Director and Jennifer Tate, City Attorney
Department:
Finance and City Atttorney
A. Issue
A new proposed national opioids settlement (“Secondary Manufacturers Settlements”) has been reached with eight opioids manufacturers: Alvogen, Amneal,Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“Settling Defendants). The City is eligible to participate because the State of Wisconsin is participating in the Secondary Manufacturers Settlements. Participation requires Common Council approval.
B. Background/Options
The State of Wisconsin elected to participate in the following Secondary Manufacturers’ Settlements related to on-going litigation related to Opioid abuses as a participating entity:
a. Settlement Agreement for Alvogen, Inc. dated April 4, 2025.
b. Settlement Agreement for Apotex Corp. dated April 4, 2025.
c. Settlement Agreement for Amneal Pharmaceuticals LLC dated April 4, 2025.
d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025.
e. Settlement Agreement for Indivior Inc. dated April 4, 2025.
f. Settlement Agreement for Viatris Inc. (“Mylan”) dated April 4, 2025.
g. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4, 2025.
h. Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. dated April 4, 2025.
As with prior settlements, the Common Council must direct staff to participate with the settlement. By participating in the settlement, the City will accrue an undetermined financial benefit to offset the harm caused by the prescribing and manufacturing practices of Opioids. As with prior settlements, the funds must be used for approved purposes to prevent future Opioid abuse or assist with mitigating damages already done. The City’s current plan is to use these funds to pay for the Substance Abuse Specialist currently funded by American Rescue Plan funds that will expire on 12/31/2026.
To date, the City has received $524,323.91 (inclusive of interest earned) and spent $8,797.28 for a balance of $515,526.63. There is no time-limit on when the funds must be spent.
C. Strategic Plan (Area of Focus)
Priority Area Five: Quality of Life
D. Fiscal Impact
The City will receive an undetermined amount of funds restricted for activities related to the prevention and treatment of Opioid abuse.
E. Recommendation
We recommend approval of participation in each of the Secondary Manufacturers Settlements noted above