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A RESOLUTION APPROVING THE COLORADO OPIOIDS SETTLEMENT MEMORANDUM OF UNDERSTANDING AND RELATED DOCUMENTS TO EFFECTUATE SETTLEMENTS
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Summary and Background Information: In 2018, the City Council authorized litigation against various manufacturers, wholesalers, and distributors of opioid painkillers. Commerce City ultimately filed a lawsuit in the pending nationwide multidistrict litigation along with dozens of other Colorado local governments, naming several dozen defendants in multiple filings and bankruptcy claims. Several larger defendants have negotiated settlements that depend on broad releases of claims and the agreement by a certain number of state and local jurisdictions (including non-plaintiffs); other settlements are expected to follow. Some settlements are incorporated into bankruptcy plans that are approved (e.g., Purdue) or pending (e.g., Mallinckrodt) and others are independent (e.g. Jannsen/Johnson & Johnson and the "Distributor Settlement").
To effectuate the settlements, both state and local governments must sign onto the settlement and agree on terms for the distribution and expenditure of funds. The State of Colorado and a coalition of local governments, of which Commerce City is a part, have negotiated the "Colorado Opioids Settlement Memorandum of Understanding" that will apply to pending and future settlements arising from this litigation. Two nationwide settlements are at a stage that requires local government action to participate.
Effect of Resolution: The resolution would approve the MOU and authorize the Mayor and Clerk to sign and attest the document. The resolution also authorizes the City Manager and City Attorney to execute such other documents and agreements as are necessary to effectuate any settlement, including the Distributor Settlement and Janssen Settlement.
MOU Terms: The MOU includes the following key terms:
- Distributions: 20% would go to local governments, 60% would go to “regions,” 10% would go to sta...
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