CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: March 6, 2023 Action Required: Approval of Resolution Presenter: Ashley Marshall, Deputy City Manager Staff Contacts: Ashley Marshall, Deputy City Manager Title: Settlement for Opioid Related Claims Background A formal communication from the National Opioids Settlements Implementation Administrator went out to all Virginia cities and counties in February 2023 concerning the proposed settlement of opioid-related claims against Teva, Allergan, Walmart, Walgreens, CVS, and their related corporate entities. All litigating localities are required to have their governing bodies approve a resolution pertaining to this additional settlement. Discussion The City of Charlottesville approved and adopted the Virginia Opiod Abatement Fund and Settlement Allocation Memorandum of Understanding and affirmed that any pending settlement would be subject to that Virginia MOU. Settlements for the "Distributors" (McKesson, Cardinal Health, and AmeriSource Bergen) as well as for Johnson & Johnson/Jansen were finalized on October 18, 2022. In late 2022, agreements were announced with three pharmacy chains—CVS, Walgreens, and Walmart—and two additional manufacturers—Allergan and Teva. In January 2023, each of those pharmacy chains and manufacturers confirmed that a sufficient number of states had agreed to the settlements to move forward. As with the 2021 National Settlements, states and local governments that want to participate in the 2022 National Settlements now will have the opportunity to “opt-in.” Through this resolution, the City of Charlottesville is exercising its right to legally opt into the settlement by Teva, Allergan, Walmart, Walgreens, and CVS. Alignment with City Council's Vision and Strategic Plan N/A Community Engagement N/A Budgetary Impact None. Recommendation It is recommended that the council approves the required resolution to opt into the Teva, Allergan, Walmart, Walgreens, and CVS opioid settlement. Alternatives The City Council can refuse to opt-in and thereby forfeit any payments to the locality. Attachments 1. Opioid Settlement Participation Agreement TEVA etc. 2. Dec06 2021-Cert. Resolution approving Virginia Opioid MOU 3. DRAFT RESOLUTION (Feb 2023) for non-litigating cities and counties - Approval of Settlements with Teva Allergan Walmart CVS and Walgreens (002)