Broward County Commission Regular Meeting
Director's Name: Andrew J. Meyers
Department: County Attorney
Information
Requested Action
title
MOTION TO APPROVE Participation Agreement regarding opioids litigation in substantially the form of Exhibit 1; and to authorize the County Administrator to execute the Participation Agreement with any required modifications, provided such modifications do not impose any additional material financial risk on the County, and subject to review and approval as to legal sufficiency by the Office of the County Attorney.
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Why Action is Necessary
The Board’s approval is required to resolve the County’s pending claims against Walgreens (“Defendant”).
What Action Accomplishes
Allows the Board to approve the Participation Agreement which, as part of a global settlement involving this Defendant, would settle and release the County’s opioid claims against the Defendant.
Is this Action Goal Related
No
Previous Action Taken
None
Summary Explanation/Background
On September 21, 2021, the Board adopted Resolution No. 2021-464 (Item No. 51), which approved the Florida Opioid Allocation and Statewide Response Agreement (the “Florida Plan”). The Florida Plan provided the framework to resolve the pending claims against opioid drug distributors, manufacturers, marketers, and other potential parties in connection with the opioid epidemic. The material provisions of the Florida Plan provide that: (1) the Florida Attorney General is authorized to negotiate and enter into settlements with the defendants in the multidistrict opioid litigation on behalf of Florida’s subdivisions and cities; (2) the settlement proceeds will be allocated into three funds (state, city/county, and regional); (3) certain large counties (including Broward County) can obtain the full regional fund if they become “Qualified Counties” by reaching agreements with a sufficient number of their municipalities relating to the use of such funds for abatement of the opioid epidemic; and (4) each government plaintiff must execute a Participation Agreement to become eligible to receive its share of the settlement funds.
On December 14, 2021 (Item No. 47), the Board approved an Interlocal Agreement for the County to enter into with municipalities which, if approved by a sufficient number of municipalities, would enable the County to qualify as a “Qualified County” under the Florida Plan, which would further enable the County to obtain the regional fund proceeds allocated under the Florida Plan. The County became a Qualified County in March 2022.
In the same agenda item, the Board authorized the County Administrator to enter into Participation Agreements with four defendants in the opioid litigation (AmerisourceBergen, Cardinal Health, McKesson, and Johnson & Johnson) to settle the County’s claims against those defendants.
On February 8, 2022 (Item No. 30), the Board authorized the County Administrator to enter into a Participation Agreement with Endo Pharmaceuticals to settle the County’s claims against it.
On May 10, 2022 (Item No. 10), the Board authorized the County Administrator to enter into Participation Agreements with three defendants in the opioid litigation (Allergan, CVS, and Teva) to settle the County’s claims against those defendants.
A proposed settlement has now been reached between the State of Florida, including its counties and municipalities, and Walgreens for a total of approximately $683 million. The settlement sets aside approximately $63 million to cover all attorneys’ fees and costs of the State of Florida and its counties and municipalities who agree to the settlement. Assuming full participation in the settlement by Florida counties and municipalities can be achieved, the State of Florida is expected to receive approximately $620 million in cash payments (the $683 million less the funds for attorneys’ fees and costs), of which the County is expected to receive approximately $23.2 million over 18 years. This amount is comprised of approximately $3.6 million in city/county fund proceeds and $19.6 million in regional fund proceeds. Except for five percent in administrative fees, all settlement funds must be used for abating the opioid crisis.
To receive these amounts the County must approve the Participation Agreement, which is attached as Exhibit 1. This agreement is in the same form that the Board approved with respect to other settlements on December 14, 2021, February 8, 2022, and May 10, 2022. The Participation Agreement releases all the County’s claims against Walgreens. It has no effect on the County’s unresolved claims against other distributors, manufacturers, retailers, and the other opioid-related parties in the ongoing opioid litigation.
The County’s outside counsel and the Office of the County Attorney recommend that the Board approve the Participation Agreement.
Source of Additional Information
Danielle W. French, Deputy County Attorney, 954-357-7600
Fiscal Impact
Fiscal Impact/Cost Summary
Not applicable.