SUBJECT:
Title
Review and Approval of Proposal Memorandum of Understanding (Allocation Agreement) and Resolution Between the State of Florida and the Board of County Commissioners Regarding the Allocation of Settlement Proceeds Between the State and Various Florida Local Governments Related to Marion County’s Participation in the Multi-District Class Action Lawsuit Involving Opioid-Related Claims
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INITIATOR: |
DEPARTMENT: |
Matthew G. Minter, County Attorney |
Legal |
DESCRIPTION/BACKGROUND:
Based on the Board’s direction, Marion County filed a lawsuit against multiple defendants; Purdue Pharma, L.P., Purdue Pharma, Inc., The Purdue Frederick Company, Inc., Endo Health Solutions Inc., Endo Pharmaceuticals, Inc., Par Pharmaceutical, Inc., Par Pharmaceutical Companies, Inc., Janssen Pharmaceuticals, Inc., Janssen Pharmaceutical, Inc. n/k/a Janssen Pharmaceuticals, Inc., Noramco, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., n/k/a Janssen Pharmaceuticals, Inc., Johnson & Johnson, Teva Pharmaceutical Industries, Ltd., Teva Pharmaceuticals USA, Inc, Cephalon, Inc., Allergan PLC f/k/a Actavis PLC, Allergan Finance, LLC, f/k/a Actavis, Inc., f/k/a Watson Pharmaceuticals, Inc., Watson Laboratories, Inc., Actavis LLC, Actavis Pharma, Inc. f/k/a Watson Pharma, Inc, Insys Therapeutics, Inc., Mallinckrodt, PLC, Mallinckrodt LLC, Specgx LLC, Cardinal Health Inc., McKesson Corporation, AmerisourceBergen Corporation, CVS Health Corporation, Walgreens Boots Alliance, Inc., Walmart Inc., and Publix Super Markets, Inc seeking compensation for County-incurred expenses related to the opioid epidemic. Our case was removed to federal court, and we eventually joined in the Multi-District Litigation (“MDL”) on a nationwide federal class action against manufacturers, distributors, and others involved in the opioid epidemic, on April 17, 2019. We are represented by a team of lawyers led by the Romano Law Group. Given that, nationwide, there are tens of thousands of claimants against these defendants, this is the only practical method of resolving all claims in a time- and cost-effective manner. Our trial team has been working with the State of Florida Office of the Attorney General, along with representatives of more than one hundred Florida local governments in negotiating settlements with the multiple defendants. We are at the point where negotiations of some settlements are nearing completion.
As part of these negotiations, both representatives of defendants, and the Florida Attorney General’s Office, are requiring that all Florida local governments join in a Memorandum of Understanding (“MOU”) that will govern how the proceeds that come to the State of Florida are allocated between and among the State and the several local governments.
Attached hereto is the proposed MOU, with a transmittal letter dated April 13, 2021 from Chief Deputy Attorney General John Guard to Chairman Gold explaining, in more detail, the benefits of the proposed MOU, and the importance of all local governments joining in the agreement. The letter explains that any local government has the legal right to not join in the MOU, but they would be exposed to at least two kinds of penalties if they don’t join: (1) exclusion from the class settlements; and (2) potentially being sued by the State of Florida to ensure that non-joining local governments take no action that would adversely affect the joining local governments in obtaining the benefits to be derived from the settlements. Note that the claims against the various defendants are not all yet nearing resolution - nevertheless, the State intends that this MOU will govern the allocation of proceeds from all cases. Under the MOU, the proceeds will be paid out over a period of years, and the exact amount each local government may receive is subject to a number of variables and different scenarios. There is a spreadsheet attached to the proposed MOU indicating annual sums that Marion County might receive from the currently pending settlements. I have communicated with the Romano Law Group and they strongly recommend that Marion County join in the MOU. Note that the MOU not only will provide for the allocation of proceeds between the State and the local governments, it also mandates that the proceeds may only be used for specifically identified opioid-response activities.
As a practical matter, not only does joining in the MOU appear to be in the best interests of the citizens of Marion County, we do not really have much choice - given the alternatives. The County has not incurred any expense for attorney fees related to this litigation, as all of the attorneys have been working on a contingency fee basis to be paid out of the proceeds of the settlement.
BUDGET/IMPACT:
None; no expenses. Unknown amount of new settlement proceeds to be paid over multiple years.
RECOMMENDED ACTION:
Recommended action
Motion to Approve Proposal Memorandum of Understanding (allocation agreement) and Authorize the Chairman to execute the Resolution.
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