HomeMy WebLinkAbout003-25 (OpioidSettlementWithPurdueSackler) RESOLUTION
A RESOLUTION OF THE FREDERICK COUNTY BOARD OF SUPERVISORS
ACCEPTING THE PURDUE PHARMA BANKRUPTCY PLAN AND APPROVING OF THE
COUNTY'S PARTICIPATION IN THE PROPOSED DIRECT SETTLEMENT OF OPIOID-
RELATED CLAIMS AGAINST THE SACKLER FAMILY,AND DIRECTING THE
COUNTY ATTORNEY AND/OR THE COUNTY'S OUTSIDE COUNSEL TO EXECUTE
THE DOCUMENTS NECESSARY TO ACCEPT THE PLAN AND EFFECTUATE THE
COUNTY'S PARTICIPATION IN THE SETTLEMENT
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 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 the Sackler family,
the owners of the Purdue Pharma family of companies, to pay an aggregate of $6.5 billion
nationwide to resolve opioid-related claims against them and resolve Purdue Pharma's bankruptcy;
and
WHEREAS,Frederick County has filed suit against Purdue Pharma and the Sackler family
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 harm of the opioid epidemic; and
WHEREAS, the County submitted a proof of claim in the bankruptcy and is thus entitled
to vote on whether the bankruptcy court should accept or reject the associated bankruptcy plan;
WHEREAS, the County has approved and adopted the Virginia Opioid Abatement Fund
and Settlement Allocation Memorandum of Understanding(the"Virginia MOU"),and affirms that
this pending settlement with the Sackler family shall be considered a "Settlement" that is 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,Janssen,Teva,Allergan,Walmart, CVS,
Walgreens, and Kroger; and
WHEREAS, the County's outside counsel has reviewed the available information about
the proposed settlement with the Sackler family and the Purdue Pharma bankruptcy plan and has
recommended that the County accept the bankruptcy plan and participate in the settlement,in order
to recover its share of the funds that the settlement would provide;
NOW THEREFORE BE IT RESOLVED that the Frederick County Board of Supervisors,
this 13' day of August, 2025, accepts the Purdue Pharma bankruptcy plan and approves of the
County's participation in the proposed settlement of opioid-related claims against the Sackler
family, and directs 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 the
Sackler family, and accept the bankruptcy plan.
Adopted this 13'h day of August 2025 by the following recorded vote:
Josh E. Ludwig, Chairman Aye John F. Jewell Aye
Heather H. Lockridge Aye Robert W. Wells Aye
Blaine P. Dunn Aye Robert T. Liero Aye
Judith McCann-Slaughter Aye
A COPY ATTEST
Michael L. Bollhoe t�r
Frederick County .Administrator
i
Resolution#003-25
COUNTY OF FREDERICK
.f
Michael Bollhoefer
County Administrator
® 540/722-8278
\¢GI Y/
1738
MEMORANDUM
TO: Board of Supervisors
FROM: Mike Bollhoefer, County Administrator
DATE: August 6, 2025
RE: Opioid Litigation Settlement with Purdue (Sackler family) and Alvogen Inc. and
other opioid manufacturers
The County previously approved participation in litigation against various entities for
their roles in the distribution, manufacture, and sale of opioid products that have fueled an
epidemic. The Sackler family, owners of the Purdue Pharma family of companies, has agreed to
terms of a$6.5 billion nationwide. Alvogen Inc. (and the other smaller manufacturers as listed in
the resolution)have agreed to terms of$720 million nationwide. These settlements will provide
funds to state and local governments nationwide as compensation and for abatement of the harm
caused by the opioid epidemic. Assuming the relevant locality settlement acceptance thresholds
are reached, Virginia's share of the Purdue settlements is expected to be $39.7 million, to be paid
over fifteen years. Frederick County's share would be approximately $509,000 paid over the
same time frame. We are still waiting on the amounts for Virginia and Frederick County's share
of the other settlement and will provide that information as soon as it becomes available.
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 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 uses Frederick County funds.
107 North Kent Street • Winchester, Virginia 22601