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HomeMy WebLinkAbout2025-081-09/02/2025-APPROVING PARTICIPATION IN THE SETTLEMENT WITH AN ADDITIONAL OPIOID DEFENDANT, PURDUE, AND A RELATEDRESOLUTION 2025-081 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING PARTICIPATION IN THE SETTLEMENT WITH AN AD DITIONAL OPIOID DEFENDANT, PURDUE, AND A RELATED WAIVER OF CLAIMS A.Communities throughout the State of Colorado, including the City of Fort Collins ("City), are suffering from an epidemic of opioid addiction. B.The opioid epidemic has not only affected individuals and families across the country, but it has also burdened the local and state governments charged with providing the services needed to address the wave of addiction. C.Local and state governments across the nation, including in Colorado, have filed lawsuits against opioid manufacturers, distributors, and pharmacies for creating the opioid epidemic. D.The parties to the various opioid lawsuits have been negotiating settlement agreements to resolve the litigation which include incentive payments for maximizing participation by local governments. E.Through extensive negotiations, local governments and the Colorado Attorney General's Office negotiated a Memorandum of Understanding to govern how opioids settlement funds will be allocated in Colorado, to maximize recover y from the variety of lawsuits filed by the state and local governments across the nation ("MOU"), along with the Subdivision Settlement Participation Forms to address opioid defendants Johnson & Johnson, AmerisourceBergen, Cardinal Health, and McKesson. F.On December 7, 2021, the City Council approved Resolution 2021-113, approving participation in the Colorado Opioids Settlement and authorizing execution of related agreements, which were signed and submitted to the Colorado Attorney General in December 2021. G.On May 3, 2022, the City Council approved Resolution 2022-055, authorizing the execution of an intergovernmental agreement regarding regional opioids settlement implementation ("IGA") and designating a City representative to the Larimer Regional Opioid Council. Resolution 2022-055 appointed Social Sustainability Department Director, Beth Yonce, as the City's representative to the Larimer Regional Opioid Council until such time as the City Manager designates a different City representative. Assistant City Manager Rupa Venkatesh has served as the alternate representative and will replace Ms. Yonce as the City Manager's appointee. H.The City entered into the IGA and it has since been amended to add participation by the Town of Estes Park, pursuant to City Council's Resolution 2023-011, adopted on January 17, 2023. -1- I.On March 21, 2023, the City Council adopted Resolution 2023-028, approving additional settlements with opioid defendants Teva, Allergan, Walmart, CVS and Walgreens. J.On August 20, 2024, the City Council approved Resolution 2024-096 approving additional settlements with opioid defendant Kroger. K.A national settlement has now been negotiated on behalf of the State of Colorado and participating local governments with additional opioid defendant, Purdue, and the City may participate in this settlement and receive settlement payments by executing a participation form for this opioid defendant, including an associated waiver of claims. L.The City desires to participate in the Colorado opioids settlement to increase recoveries for Colorado government entities and so the City is eligible to receive settlement funds to be used for approved purposes to abate the opioid epidemic as defined in the MOU for the benefit of the residents of the City. M.Accordingly, the City Council desires to approve participation in the Purdue settlement and authorize execution of a Purdue participation form consistent in content with the sample form attached to this Resolution as Exhibit A and incorporated herein by this reference. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RES OLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council approves the City's part icipation in the Purdue settlement. Section 2. The Mayor is authorized and directed to execute on behalf of the City a participation form consistent with th is Resolution and in a final form recommended and presented by the City Manager and approved by the City Attorney. -2- Passed and adopted on September 2, 2025. ATTEST: Effective Date: September 2, 2025 Approving Attorney: Jenny Lopez Filkins Exhibit: Exhibit A -Participation Form -3- EXHIBIT A TO RESOLUTION 2025-081 Docusign Envelope ID: 651 B90DA-9179-45BF-9E6A-7B 1 B8CBCCAC9 EXHIBITK Subdivision Participation and Release Form Governmental Entity: Fort Collins city Authorized Signatory: Address 1: Address 2: City, State, Zip: Phone: Email: . I State: CO The governmental entity identified above ("Governmental Rti::,), in order to obtain and in consideration for the benefits provided to the Government;�;i·;sp ·uant to that certain Governmental Entity & Shareholder Direct Settlement Agr:.eem nt acco panying this participation form (the "Agreement")1 , and acting through the under-igned • thorized official, hereby elects to participate in the Agreement, grant th eleases set fo l5elow, and agrees as follows. 1.The Governmental Entity is aware of gi·eement, and agrees that by executing this Participation and R emmental Entity elects to participate in the Agreement an %t. atmg u:, ivision as provided therein. 2.The Governmental Entity shal after the Effective Date, and prior to the filing of the Consent Judgment,juclice any Shareholder Released Claims and Released Claims that it espect to any Shareholder Released Claims and Released Claims •• I Prescription Opiate Litigation, MDL No. 2804, the Governmenta o ••e Plaintiffs' Executive Committee to execute and file on behalf of t ntity a Stipulation of Dismissal with Prejudice substantiall in ti. n . ps://nationalopioidsettlement.com. 3.The povernmental.Enti agrees to the terms of the Agreement pertaining to ParticipatingSubdivisions ascl,2ed•tl1erei n, 4.By agrcci1� to tli terms of the Agreement and becoming a Releasor, the GovernmentalEntity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning following the Effective Date. 5.The Governmental Entity agrees to use any monies it receives through the Agreementsolely for the purposes provided therein. 6.The Governmental Entity submits to the jurisdiction of the court in the GovernmentalEntity's state where the Consent Judgment is filed for purposes limited to that court's roleas and to the extent provided in, and for resolving disputes to the extent provided in, the 1 Capitalized terms used in this Exhibit K but not otherwise defined in this Exhibit K have the meanings given to them in the Agreement or, if not defined in the Agreement, the Master Settlement Agreement. K-1 m' . EXHIBIT A TO RESOLUTION 2025-081 Docusign Envelope ID: 651 B90DA-9179-45BF-9E6A-7B 1 B8CBCCAC9 Agreement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the Agreement. 7.The Governmental En tity has the right to enforce the Agreement as provided therein. 8.The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Agreement, including without limitation all provisions of Article 10 (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the forcgoiJ1 ,and any agency, person, or other entity claiming by or through any of the foregoing, aoi:l any other entity identified in the definition of Subdivision Rclcasor, to the maximumie ·tent o '· authority, for good and valuable consideration, the adequacy of which is hereoy, con m1ed, the Shareholder Released Parties and Released Parties arc, as of the Effective Date, her y released and forever discharged by the Governmental Entity and its Subdivision eleasors from: any and all Causes of Action, including, without limit tion, any Estate Gause of Action and any claims that the Governmental Entity or its Subdivision,Releasor would have presently or in the future been legally entitled to assert in its o n�fit (whether individually or collectively), notwithstanding section 15 2 of the Californ·a Civil Code or any law of any jurisdiction that is similar, compar ble or eHui ent thereto (which shall conclusively be deemed waived), whether existing �er inafter arising, in each case, (A) directly or indirectly based on, arising out of, t'i any Na relating to or concerning, in whole or in part, (i) the Debtors, as such Entitie.;\exi-s ed ptior to or after the Petition Date, and their Affiliates, (ii) the Estate , iii) the Cha ter l Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission r ia ility of any Debtor or any Estate is the legal cause or is otherwise a lega � y_ relevant factor (eaeh such release, as it pertains to the Shareholder Released Parties, tti;e "Sharehol er Released Claims", and as it pe11ains to the Released Parties other than t e S re older Released Parties, the "Released Claims"). For the avoidance of doubt and :v ithout limiting the foregoing: the Shareholder Released Claims and I\e1eased Claims include any Cause of Action that has been or may be asserted against any SHareholdec leased Party or Released Party by the Governmental Entity or its Subdivision Releasors (whether or not such party has brought such action or proceeding) in any federal, stat or local action or proceeding (whether judicial, arbitral, or administraf ve 1'<.} directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor. 9.As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and in-evocably 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 Shareholder Released Claims or Released Claims against any Shareholder Released Party or Released Party in any f01um whatsoever, subject in all respects to Section 9.02 of the Master Settlement Agreement. The releases provided for herein (including the term "Shareholder Released K-2 EXHIBIT A TO RESOLUTION 2025-081 Docusign Envelope ID: 651 B90DA-9179-45BF-9E6A-781 B8CBCCAC9 Claims" and "Released Claims") are intended by the Governmental Entity and its Subdivision Releasers to be broad and shall be interpreted so as to give the Shareholder Released Parties and Released Parties the broadest possible release of any liability relating in any way to Shareholder Released Claims and Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Agreement shall be a complete bar to any Shareholder Released Claim and Released Claims. 10.To the maximum extent of the Governmental Entity's power, the Shareholder Released Parties and the Released Parties are, as of the Effective Date, hereby released and discharged from any and all Shareholder Released Claims and Released Claims of the Subdivision Releasers. _i 11.The Governmental Entity hereby takes on all rights anct/ob{gations of a Participating Subdivision as set forth in the Agreement. 12.In connection with the releases provided for in the Agreement, ea h �mental Entity expressly waives, releases, and forever discha� any and al rovisions, rights, and benefits con ferred by any law of any staJe-o • ter itory of tie Un.ited Sta tes or other jurisdiction, or principle of conunon la (whioJ.1{ s1 ilar, co para . ble, or equivalent to §l 542 of the California Civil Code, �-e 1 read!(General Release; extent. Age eral relea .e does not extend to claims that the creditor or releasing party doe 1ot kQow or suspect to exist in his or her favor at the time of executing tH ·elea e tnat, if known by him or her, would have materially affected his or �\ se tleme1 t with the debtor or released party. '-_� � A Releaser may heteafter d��er fact other than or different from those which it knows, believes, or assumes o be true w-:i$ respect to the Shareholder Released Claims or such other Claims released 1).,mant o this release, but each Governmental Entity hereby expressly, wa�es and fi ly, final y, and forever settles, releases and discharges, upon the Effcct"ve Date, any ancl all Shareholder Released Claims or such other Claims released pun;uant to tl�e e-se t' at may exist as of such date but which Releasors do not know or suspect-to exist, whet ier through ignorance, oversight, error, negligence or through no fault whatsoeve� and tiich, if known, would materially affect the Governmental Entities' decision to participate in the Agreement. 13.Nothing herein is intended to modify in any way the tenns of the Agreement, to which Governmental Entity hereby agrees. To the extent any portion of this Participation and Release Fonn not relating to the release of, or bar against, liability is interpreted differently from the Agreement in any respect, the Agreement controls. 14.Notwithstanding anything to the contrary herein or in the Agreement, (x) nothing herein shall (A) release any Excluded Claims or (B) be construed to impair in any way the rights and obligations of any Person under the Agreement; and (y) the Releases set fo11h herein shall be subject to being deemed void to the extent set forth in Section 9.02 of the Master Settlement Agreement. K-3 EXHIBIT A TO RESOLUTION 2025-081 Docusign Envelope ID: 651890DA-9179-45BF-9E6A-78188CBCCAC9 I have all necessary power and authorization to execute this Paiiicipation and Release Form on behalf of the Governmental Entity. Signature: Name: Title: Date: K-4 ii