HomeMy WebLinkAbout084-26 (OpioidSettlementAgreementParticipation) RESOLUTION
A RESOLUTION OF THE FREDERICK COUNTY BOARD OF SUPERVISORS
APPROVING OF THE COUNTY'S PARTICIPATION IN THE PROPOSED COMBINED
SETTLEMENT AGREEMENT RESOLVING OPIOID-RELATED CLAIMS AGAINST
ASSOCIATED PHARMACIES, INC. (AND AMERICAN ASSOCIATED PHARMACIES); J
M SMITH CORPORATION; LOUISIANA WHOLESALE DRUG COMPANY, INC; MORRIS
AND DICKSON CO.; NORTH CAROLINA MUTUAL WHOLESALE DRUG COMPANY,
INC.;AND UNITED NATURAL FOODS, INC. (INCLUDING ITS SUBSIDIARIES
SUPERVALU AND ADVANTAGE LOGISTICS) (COLLECTIVELY REFERRED TO AS
THE SIX REMNANT DEFENDANTS), AND DIRECTING THE COUNTY
ADMINISTRATOR TO EXECUTE THE DOCUMENTS NECESSARY TO 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 six opioids
defendants, Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith
Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina
Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries
SuperValu and Advantage Logistics) ("Six Remnant Defendants") to pay approximately
$97,625,000 nationwide to resolve opioid-related claims by state subdivisions against it; and
WHEREAS, Frederick County will be entitled to a portion of the settlement proceeds
despite not having filed suit against any of the Six Remnant Defendants; and
WHEREAS,the County 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's outside opioid litigation counsel has recommended that the
County participate in the Six Remnant Defendants 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 22nd day of April, 2026, approves of the County's participation in the proposed settlement of
opioid-related claims against the Six Remnant Defendants and their related corporate entities, and
directs the County Administrator to execute the documents necessary to effectuate the County's
participation in the settlement, including the required release of claims against the Six Remnant
Defendants.
Adopted this 22nd day of April 2026 by the following recorded vote:
John F. Jewell, Chairman Aye Michael D. Guevremont Aye
Albert L. Orndorff Aye Robert T. Liero Aye
Jason C. Aikens Aye Gary R. Oates Aye
Robert W. Wells Aye
A COPY ATTEST
ZENON"
Michael L. Bollhoefer
Frederick County Ad nistrator
No. 084-26
COUNTY OF FREDERICK
Office of County Attorney
04
Phone: 540-722-8383
Fax: 540-667-0370
1 38
MEMORANDUM
TO: Board of Supervisors
FROM: Andrew R. Fox, County Attorney
DATE: April 22, 2026
RE: Frederick County Opioid Remnant Defendant Settlement Authorization
This Resolution authorizes the County Administrator to approve Frederick County's
participation in an opioid settlement with six national pharmaceutical companies referred to as
the"Remnant Defendants." Participating localities will share approximately $98M in settlement
proceeds. Frederick County's share will be determined once all eligible localities have opted in
to the settlement by the deadline of May 4, 2026.
We will continue to identify permissible uses of opioid settlement funds as discussed
during the Board's recent budget deliberations. Generally, funds must be used for new or
enlarged substance abuse programs and cannot replace or supplant existing local funding for
such programs.
Attachment
107 North Kent Street • Winchester, Virginia 22601