On December 14, 2021, the City Council adopted Resolution No. 9717-21 approving participation in the settlement that was reached in multi-district litigation in Ohio brought by states and cities against McKesson, Cardinal Health and Amerisource Bergen, and the opioid manufacturer Janssen Pharmaceuticals, Inc. (a subsidiary of Johnson & Johnson).

Additional settlements have been reached with manufacturers Teva and Allergan, and pharmacies Walgreens, Walmart and CVS, for their roles in the opioid epidemic.

By opting-in to participate in the additional settlements, the City will receive funds from the settlements under terms similar to the terms of the first settlements already approved by the City Council, which will be available for a range of approved abatement uses designed to (1) address the misuse and abuse of opioid products, (2) treat or mitigate opioid use or related disorders, or (3) mitigate other alleged effects of, including on those injured as a result of, the opioid epidemic. The list of pre-approved uses includes a range of intervention, treatment, education, and recovery services. The City will have annual reporting obligations on the use of the funds.

Also similar to the first approved settlements, before the funds in the additional settlements are released, certain milestones must be met which, if not met, could allow the settling defendants to void the agreements. The principal milestone is that a “critical mass” of both state and local governments “opt in” and, thereby, participate in the settlement. The extent of this participation will determine whether the settlement agreements take effect.

Local jurisdictions “opt in” by executing a Participation Agreement. The deadline for Garden Grove and other jurisdictions to “opt in” on these additional settlements is April 18, 2023.  Given the tight deadline, the City has already submitted the documentation indicating that it will participate, pending ratification by the City Council with the approval of the attached resolution.

The California Attorney General provides more information and copies of the agreements at the following website: https://oag.ca.gov/opioids

It is recommended that the City Council:

• Adopt the Resolution approving and ratifying participation in the additional national opioid settlement agreements; and

• Authorize the City Manager to take all necessary and reasonable actions to effectuate the City's participation, including executing all necessary agreements and documents subject to the review and approval of the City Attorney, including any future settlements.