003-24 (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 KROGER AND ITS 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 SETTLEMENT
WHEREAS, the opioid epidermic that has cost thousands of human lives across the country
also impacts Frederick County by adversely impacting the delivery of ernergency 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 damage the
opioid epidemic has caused and continues to cause the citizens of Frederick County; and
WHEREAS, a settlement proposal has been negotiated that will cause Kroger to pay over
a billion dollars nationwide to resolve opioid-related claims against it; and
WHEREAS, the County has approved and adopted the Virginia Opioid Abatement Fund
and Settlement Allocation Memorandum of Understanding(the"Virginia MOU"),and affnns that
this pending settlement with Kroger shall be considered a "Settlement" that is subject to the
Virginia MOU, and shall be adii-iinistered and allocated in the same manner as the opioid
settlements entered into previously with the Distributors, Janssen,Teva, Allergan, Wahnart, CVS,
and Walgreens; and
WHEREAS, the County's outside opioid litigation counsel has recommended that the
County participate in the settlement 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 settlement and concurs with the recommendation of outside counsel.
NOW THEREFORE BE IT RESOLVED that the Frederick County Board of Supervisors,
this 10`,' day of July 2024, approves of the County's participation in the proposed settlement of
Res No. 003-24
opioid-related claims against Kroger and its 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 settlement, including the required release of claims against Kroger.
Adopted this 10`11, day of July 2024 by the following recorded vote:
Josh Ludwig, Chairman Aye John Jewell Aye
Heather H. Lockridge Aye Robert W. Wells Aye
Blaine P. Dusan Aye Robert Liero Aye
Judith McCann-Slaughter- Aye
A COPY ATTEST
rc sae L. Boll ioe r
Frederick County ministrator
Res No. 003-24
21175141
COUNTY OF FREDERICK
-r CDU
Roderick B.Williams
County Attorney
■ 540/722-8383
Fax 540/667-0370
E-mail rwillia@fcva.us
MEMORANDUM
TO: Board of Supervisors
FROM: Roderick B. Williams, County Attorney
DATE: July 2, 2024
RE: Opioid Litigation Settlement with Kroger
As you are aware, the County previously approved participation in litigation against
various entities (collectively, the"Defendants") for their roles in the distribution, manufacture,
and sale of opioid products that have fueled an epidemic. Kroger has agreed to terms of a $1.37
billion nationwide settlement(please note that, while Kroger and its subsidiaries do not operate
stores in Frederick County, settlements in the opioid litigation are generally "global", without
reference to specific business locations). This settlement will provide funds to state and local
governments nationwide as compensation and for abatement of the harms caused by the opioid
epidemic. Additionally, the settlement will offer injunctive relief that will compel Kroger to
change its business practices in meaningful ways. Assuming that relevant locality settlement
acceptance thresholds are reached,Virginia's share of the settlement proceeds is expected to be
approximately $28 million, to be paid over eleven years. Frederick County's share, that it will
receive directly, will be approximately $137,000.
Once approved, this settlement 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, this settlement will be treated in the same way as the earlier
settlements with other opioid litigation defendants.
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 continuing settlements of the opioid litigation 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.
I have carefully reviewed the available information about the proposed settlement and
concur with the recommendation of outside counsel to join in the Kroger settlement.
Attachment