HomeMy WebLinkAbout004-25 (OpioidSettlementWithManufacturers) RESOLUTION
A RESOLUTION OF THE FREDERICK COUNTY BOARD OF SUPERVISORS
APPROVING OF THE COUNTY'S PARTICIPATION IN THE PROPOSED SETTLEMENTS
OF OPIOID-RELATED CLAIMS AGAINST ALVOGEN, AMNEAL, APOTEX, HIKMA,
INDIVIOR, MYLAN, SUN, AND ZYDUS 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 damage the
opioid epidemic has caused and continues to cause the citizens of Frederick County; and
WHEREAS, eight settlement proposals have been negotiated that will cause eight opioids
manufacturers, Alvogen, Inc., Amneal Pharmaceuticals, Inc., Apotex Corp, Hikma
Pharmaceuticals USA, Inc., Indivior Inc., Mylan Pharmaceuticals Inc, Sun Pharmaceutical
Industries, Inc., and Zydus Pharmaceuticals (USA) Inc. (collectively the "Manufacturers") to pay
approximately $720 million nationwide to resolve opioid-related claims against it; and
WHEREAS, Frederick County has filed suit against certain of the manufacturers and 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 / City'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, 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 the Manufacturers 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 opioid litigation counsel has recommended that the
County participate in the eight settlements in order to recover its share of the funds that the
Manufacturers settlements 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 13''day of August, 2025, approves of the County's participation in the proposed settlements
of opioid-related claims against the Manufacturers 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 the Manufacturers.
Adopted this 13t'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. Bollhoef.
Frederick County ministrator
Resolution#004-25
COUNTY OF FREDERICK
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Michael Bollhoefer
County Administrator
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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