TO: Board of Supervisors
FROM: Sheryl L. Bratton, County Counsel
REPORT BY: Sherri S. Kaiser, Chief Deputy County Counsel
SUBJECT: Participation in the National Opioids Settlement with Kroger
RECOMMENDATION
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Approve participation in the National Opioids Settlement with Kroger to receive $260,000 over 11 years and authorize the participation agreement waiving the right to sue Kroger. (Fiscal Impact: $260,000 Revenue; General Fund; Not Budgeted; Discretionary)
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BACKGROUND
In May 2018, the Board authorized a consortium of outside counsel involved in the nationwide opioid litigation to file a federal complaint on behalf of the County against 14 manufacturers, distributors, and retailers of opioid drugs. Although that case is ongoing, most of the major defendants have settled. In July 2021, this Board authorized the County to participate in a nationwide settlement with the parent company of opioid manufacturer Janssen Pharmaceuticals and distributors McKesson, Cardinal Health, and Amerisource Bergen. In March 2023, this Board authorized further settlements with CVS, Walgreens, Walmart, Teva, and Allergan.
California's share of the nationwide settlement funds depends on the number of counties and cities in California that choose to participate. The State administers the settlement funds, which are restricted and must be used to support opioid abuse disorder abatement efforts. Combined, the 2021 and 2023 settlements will provide approximately $10 million to the County over 18 years, of which the County had received $951,605 by the close of FY 2023-24. The Health & Human Services Agency manages the funds for the County, and, coincidentally, agenda item number 24-1158 on today's consent calendar is a recommendation to use a portion of the settlement funds to enter agreements for local opioid prevention and health education services.
Kroger has also been a defendant in some of the opioid cases around the country, although not in Napa County's case. Nonet...
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