HomeMy WebLinkAboutItem 16 Opioid Litigation 6.7.2021 (00019851xF5DC7)
AGENDA ITEM SUMMARY Meeting Date: 6/7/2021
Meeting Type: Regular Meeting
Staff Contact/Dept.: Mary Bridget Smith/CAO
Staff Phone No: 541-744-4061
Estimated Time: 05 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Strengthen Public Safety
by Leveraging
Partnerships and
Resources
ITEM TITLE: OPIOID MDL LITIGATION - AUTHORIZATION FOR SETTLEMENT FUND
DISTRIBUTION PROPOSAL
ACTION
REQUESTED:
Approve/Not Approve a settlement fund distribution model for the Opioid MDL
litigation with 15% to the state, 85% to local entities as put forward by Lane
County as part of the “litigating entities.”
ISSUE
STATEMENT:
Cities and counties nationwide have sued opioid manufacturers, distributors, and
marketers for the harm caused to their communities. Those lawsuits have been
consolidated into a class action and a national settlement agreement may be
forthcoming. Lane County is asking for the City of Springfield’s agreement in their
proposal for settlement fund distribution.
ATTACHMENTS: None
DISCUSSION/
FINANCIAL
IMPACT:
Background: The City is part of a class action lawsuit known as a multi-district
litigation (MDL litigation) being handled by a federal judge in Ohio. Nine counties
(Multnomah, Clackamas, Washington, Lane, Columbia, Clatsop, Jackson,
Josephine, and Yamhill) and the City of Portland have hired outside counsel and
filed suit against various opioid manufacturers and distributors as part of that
litigation. The 10 Oregon public entities are collectively known as the “litigating
entities.” They, along with Springfield, are part of the class action and allege that
the manufacturers of prescription opioids grossly misrepresented the risks of long-
term use of those drugs for persons with chronic pain, and distributors failed to
properly monitor suspicious orders of those prescription drugs, all of which
contributed to the current opioid epidemic. The parties are working toward a
national class action settlement agreement.
The two aspects of the potential national class settlement agreement that are
relevant to the City of Springfield are the fund amount and distribution. The
amount is determined by an allocation model that weighs three factors: 1) number
of persons suffering from opioid use disorder, 2) the number of overdose deaths,
and 3) the amount of opioids distributed. The funds must be used for approved uses
such as treatment, prevention and other related strategies.
The County is asking for the City’s support of its proposed settlement fund
distribution model. That model provides for 15% of the settlement funds to go to
the state and 85% directly to the local entities.