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HomeMy WebLinkAboutReg 2024-04-15 Item 8 - Agreement - Participation Agreement for Opioid Mitigation Settlement Agreement with Johnson & JohnsonCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 4/15/24 ADT ITEM INFORMATION ITEM No. 8 STAFF SPONSOR: ANDREW TSOMING, CAO ORIGINAL AGENDA DATE: 4/15/24 AGENDA ITEM TITLE Consideration of a Participation Agreement for the Opioid Mitigation Settlement Agreement with Johnson & Johnson CATEGORY ® Discussion Mtg Date 4/15/24 ® Motion Mtg Date 4/15/24 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY The Council is being asked to consider and approve the City's participation in a settlement agreement with Johnson & Johnson to mitigate harm caused by the opioid crisis that was negotiated by the Washington State Attorney General's Office on behalf of Washington cities. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: N/A ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. City Attorney's Office COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 4/15/24 MTG. DATE ATTACHMENTS 4/15/24 Informational Memorandum, dated 4/15/2024 Johnson & Johnson Opioid Settlement Agreement Johnson & Johnson Opioid Settlement Agreement Participation Form City Contract #22-052: One Washington MOU Between Washington Municipalities 131 132 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: TUKWILA CITY COUNCIL FROM: Andrew Tsoming, Assistant City Attorney CC: Mayor McLeod DATE: April 15, 2024 SUBJECT: Consideration of a Participation Agreement for the Opioid Mitigation Settlement Agreement with Johnson & Johnson ISSUE On January 24, 2024, the Washington State Attorney General announced that the State of Washington entered into a $149.5 million settlement with Johnson & Johnson. To participate in the settlement, and receive funds for the mitigation of harm associated with prescription opioids, the City must sign and return Settlement Participation Form before May 11, 2024. BACKGROUND In recent years, the Washington State Attorney General's Office has filed numerous lawsuits against entities involved in the pharmaceutical supply chain of prescription opioids. Since then, several of the lawsuits have already been settled, including lawsuits against distributors AmerisourceBergen, Cardinal Health, and McKesson for $518 million. As a qualifying Washington State municipality, the City may opt into settlement agreements with the defendant entities to receive funds in exchange for waiver of certain legal claims. The exact amount the City will receive from each settlement agreement is determined by the One Washington Memorandum of Understanding Between Washington Municipalities ("MOU"). Previously, City Council approved the MOU and Allocation Agreement and Participation Form for the settlement agreement with distributors AmerisourceBergen, Cardinal Health, and McKesson. On January 24, 2024, Washington State Attorney General Bob Ferguson announced that the State of Washington entered into a $149.5 million settlement with Johnson & Johnson payable this year. Of this amount, $123.3 million will be dedicated to abating the opioid crisis in Washington State. As with the prior settlement agreements, this new settlement is contingent on eligible cities and counties joining the settlement. If all eligible cities and counties join as they did for the prior settlements, cities and counties will receive $61.67 million, which is half of the abatement amount. Funds received from this settlement must be spent on opioid remediation to abate the opioid crisis in their communities. Copies of the MOU, Settlement Agreement with Johnson & Johnson, and Settlement Participation Form are attached to this memorandum. To join the Johnson & Johnson Settlement Agreement, a city must: (a) submit the Settlement Participation Form online or (b) complete the Form and email it to ParticipationandDismissals@National OpioidOfficialSettlement.com. The deadline for cities and counties to submit the Settlement Participation Form is May 11, 2024. RECOMMENDATION The Council is being to consider this item for approval at the April 15 Regular Meeting. ATTACHMENTS -Johnson & Johnson Opioid Settlement Agreement -Johnson & Johnson Opioid Settlement Agreement Participation Form -City Contract #22-052: One Washington Memorandum of Understanding Between Washington Municipalities {ADT4892-9758-2517;1/13175.000001/} 133 134 EXHIBIT B Settlement Participation Form Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Email: The governmental entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Janssen Washington State -Wide Opioid Settlement Agreement dated January 22, 2024 ("Janssen Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Janssen Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Janssen Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Janssen Settlement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall, within 30 days of the filing of the Consent Judgment, secure the dismissal with prejudice of any Released Claims that it has filed. 3. The Governmental Entity agrees to the terms of the Janssen Settlement pertaining to Subdivisions as defined therein. 4. By agreeing to the terms of the Janssen Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Janssen Settlement solely for the purposes provided therein. 6. The Governmental Entity submits to the jurisdiction of the court where the Consent Judgment is filed for purposes limited to that court's role as provided in, and for resolving disputes to the extent provided in, the Janssen Settlement. 7. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Janssen Settlement, including but not limited to all provisions of Section IV (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity B-1 135 elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Janssen Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Janssen Settlement shall be a complete bar to any Released Claim. 8. In connection with the releases provided for in the Janssen Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities' decision to participate in the Janssen Settlement. 9. This Settlement Participation Form shall be deemed effective as of the Effective Date of the Janssen Settlement. 10. Nothing herein is intended to modify in any way the terms of the Janssen Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Janssen Settlement in any respect, the Janssen Settlement controls. B-2 136 I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity. Signature: Name: Title: Date: B-3 137