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A resolution authorizing the Metropolitan Government to settle opioid-related claims with Remnant Defendants.
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WHEREAS, the opioid epidemic continues to impact communities in the United States, the State of Tennessee, and the Metropolitan Government of Nashville and Davidson County (“Metropolitan Government”); and,
WHEREAS, the Metropolitan Government has suffered harm and will continue to suffer harm as a result of the opioid epidemic; and,
WHEREAS, the State of Tennessee and some Tennessee local governments, including the Metropolitan Government, have filed lawsuits against opioid manufacturers, distributors, and retailers, including many federal lawsuits by Tennessee counties and cities that are pending in the litigation captioned In re: National Prescription Opiate Litigation, MDL No. 2804 (N.D. Ohio) (“the Opioid Litigation”); and,
WHEREAS, the Metropolitan Government has previously joined settlements with multiple pharmaceutical distributors, manufacturers, and retail pharmacies; and,
WHEREAS, Associated Pharmacies, Inc., American Associated Pharmacies, J M Smith Corporation, Louisiana Wholesale Drug Company, Inc., Morris & Dickson Co., North Carolina Mutual Wholesale Drug Company, Inc., United Natural Foods, Inc. (including without limitation its direct and indirect subsidiaries SuperValu, Inc., Advantage Logistics Southwest, Inc., Advantage Logistics USA West, L.L.C., Advantage Logistics USA East, L.L.C., and UNFI Distribution Company, LLC) collectively, and all their past and present subsidiaries (excluding, in the case of United Natural Foods, Inc., New Albertsons, Inc. (a former subsidiary of SuperValu, Inc.)), divisions, predecessors, successors, and assigns (in each case, whether direct or indirect) (“Remnant Defendants”) have proposed a settlement that the Metropolitan Government of Nashville and Davidson County finds acceptable and in the best interest of the community.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1: The Metropolitan Government finds that this settlement is in the best interest of the Metropolitan Government.
Section 2: The Metropolitan Mayor is expressly authorized to execute any formal agreement and related documents evidencing the Metropolitan Government’s agreement to the settlement of claims and litigation against Remnant Defendants, which are estimated to total approximately $150,000.
Section 3: The Metropolitan Mayor is authorized to take such other action as necessary and appropriate to effectuate the Metropolitan Government’s participation in these settlements.
Section 4: This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
The resolution settles litigation related to the opioid epidemic with a number of defendants.
The Metropolitan Government (“Metro”) filed suit in 2017 in Metropolitan Gov’t v. Purdue Pharma, L.P., et al., in the Middle District of Tennessee. That federal lawsuit became part of the nationwide multi-district litigation that resulted in the settlement at issue in the proposed resolution.
RS2021-1235 approved a settlement with the three largest pharmaceutical distributors AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation, and manufacturer Janssen Pharmaceuticals, Inc., and its parent company Johnson & Johnson.
In November 2021, the Metropolitan Council (“the Council”) approved Metro’s participation in the agreement between the State of Tennessee and its political subdivisions (including Metro) as to how settlement funds will be distributed. Metro has received millions of dollars related to this settlement and will continue to receive funds for the next several years. The Council has approved various settlements in line with that agreement in 2023, 2024, and 2025.
The proposed resolution approves a smaller, approximately $150,000 settlement with the following defendants: Associated Pharmacies, Inc., American Associated Pharmacies, J M Smith Corporation, Louisiana Wholesale Drug Company, Inc., Morris & Dickson Co., North Carolina Mutual Wholesale Drug Company, Inc., and United Natural Foods, Inc. This settlement would occur directly through the Metropolitan Government and not through the settlement agreement with the State of Tennessee and its political subdivision.
The Metropolitan Department of Law recommends the Council approve the amended settlement agreement. The Metropolitan Public Health Department will oversee the receipt and expenditure of funds Metro received related to the opioid-abatement-related settlements.
Fiscal Note: Metro would receive a proposed settlement in the amount of $150,000 from the National Prescription Opiate Litigation, MDL No. 2804.