049-23 (OpioidLitigationSettlement) f
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RESOLUTION
A RESOLUTION OF THE FREDERICK COUNTY BOARD OF SUPERVISORS
APPROVING OF THE COUNTY'S PARTICIPATION IN THE PROPOSED SETTLEMENT
OF OPIOID-RELATED CLAIMS AGAINST TEVA, ALLERGAN, WALMART,
WALGREENS, CVS, AND THEIR RELATED CORPORATE ENTITIES, AND
DIRECTING THE COUNTY ATTORNEY AND/OR THE COUNTY'S OUTSIDE COUNSEL
TO EXECUTE THE DOCUMENTS NECESSARY TO EFFECTUATE THE COUNTY'S
PARTICIPATION IN THE SETTLEMENTS
WHEREAS,the opioid epidemic that has cost thousands of human lives across the country
also impacts Frederick County by adversely impacting the delivery of emergency medical, law
enforcement, criminal justice, mental health and substance abuse services, and other services by
Frederick County's various departments and agencies; and
WHEREAS, Frederick County has been required and will continue to be required to
allocate substantial taxpayer dollars, resources, staff energy and time to address the dainage the
opioid epidemic has caused and continues to cause the citizens of Frederick County; and
WHEREAS, Frederick County has filed suit against Teva, Allergan, Walmart, Walgreens,
CVS, and certain of their related corporate entities for their role in the distribution, manufacture,
and sale of the pharmaceutical opioid products that have fueled the opioid epidemic that has
harmed Frederick County; and
WHEREAS,the County's suit seeks recovery of the public funds previously expended and
to be expended in the future to abate the consequences and harms of the opioid epidemic; and
WHEREAS, settlement proposals have been negotiated that will cause Teva, Allergan,
Walmart, Walgreens, and CVS to pay billions of dollars nationwide to resolve opioid-related
claims against them; and
WHEREAS, the County has approved and adopted the Virginia Opioid Abatement Fund
and Settlement Allocation Memorandum of Understanding(the"Virginia MOU"), and affirms that
these pending settlements with Teva, Allergan, Walmart, CVS, and Walgreens shall be considered
"Settlements"that are subject to the Virginia MOU, and shall be administered and allocated in the
same manner as the opioid settlements entered into previously with the Distributors and Janssen;
and
Res. No. 049-23
WHEREAS, the County's outside opioid litigation counsel has recommended that the
County participate in the settlements in order to recover its share of the funds that the settlement
would provide; and
WHEREAS, the County Attorney has reviewed the available information about the
proposed settlements and concurs with the recommendation of outside counsel;
NOW THEREFORE BE IT RESOLVED that the Frederick County Board of Supervisors,
this 22"d day of February, 2023, approves of the County's participation in the proposed settlement
of opioid-related claims against Teva, Allergan, Walmart, Walgreens, CVS, and their related
corporate entities, and directs the County Attorney and/or the County's outside counsel to execute
the documents necessary to effectuate the County's participation in the settlements, including the
required release of claims against settling entities.
Charles S. DeHaven, Jr., Chairman Aye Shawn L. Graber Aye
Gainesboro District Vacant Robert W:Wells Aye
Blaine P. Dunn Aye Josh Ludwig Aye
Judith McCann-Slaughter Absent
A COPY ATTEST
Michael L. BolIhoefer
Frederick County Adi in
trator
Res. No. 049-23
COUNTY OF FREDERICK
r
Roderick B. Williams
County Attorney
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540/722-8383
173 8 Fax 540/667-0370
173
E-mail rwillia@fcva.us
MEMORANDUM
TO: Finance Committee
FROM: Roderick B. Williams, County Attorney
DATE: February 16, 2023
RE: Opioid Litigation Settlements with Teva, Allergan, Walmart, Walgreens and CVS
As you are aware, the County previously filed a lawsuit against Teva, Allergan, Walmart,
Walgreens, CVS, and their related corporate entities (collectively, the "Defendants")for their
roles in the distribution, manufacture, and sale of opioid products that have fueled an epidemic.
After years of litigation, these Defendants have now agreed to terms of global settlements that
combined provide over$18.7 billion to state and local governments nationwide for abatement of
the harms caused by the opioid epidemic. Additionally, the settlements will offer injunctive relief
that will compel the settling defendants to change their business practices in meaningful ways.
Assuming that relevant participation thresholds are reached, Virginia's share of the settlement
proceeds is expected to be in excess of$425 million.
Once approved, these settlements will be allocated and administered pursuant to the
terms of the Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of
Understanding entered into by the County and the Office of the Virginia Attorney General
previously in 2021. Thus, they will be treated in the same way as the earlier settlements with the
Distributor Defendants and Janssen Pharmaceutical, which began distributing settlement funds
last calendar year. Settlement funds will flow to the County, both directly and indirectly via the
Virginia Opioid Abatement Authority, over a period of years.
This represents the second wave of settlements flowing from the litigation commenced by
the County against numerous opioid supply chain defendants several years ago. The legal work
connected with this litigation has been performed on a contingent fee basis and has involved no
out of pocket cost to the County. Litigation will continue against several currently non-settling
defendants.
107 North Kent Street • Winchester, Virginia 22601
The settlements with Teva, Allergan, Walmart, Walgreens and CVS are the product of
years of hard-fought litigation and complicated negotiation by outside counsel. The settlements
provide significant sums to state and local governments to help recover from the past harm
suffered because of the opioid epidemic and to help fight the ongoing harms the epidemic
continues to inflict on public entities. The settlements also provide important injunctive relief
that will force the settling entities to change the way they do business.
Our office has carefully reviewed the available information about the proposed
settlements and concurs with the recommendation of outside counsel to join in the settlements
with these Defendants.
Attachment