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HomeMy WebLinkAboutItem S4 Liz Yongue From: Gomez-Krystal <Gomez-Krystal@MonroeCounty-FL.Gov> Sent: Tuesday, September 9, 2025 11:50 AM To: Ballard-Lindsey; County Commissioners and Aides; Kevin Madok; Senior Management Team and Aides; Liz Yongue; InternalAudit Cc: Shillinger-Bob; Williams-Jethon; Cioffari-Cheryl; Livengood-Kristen; Rubio-Suzanne; Pam Radloff; County-Attorney; Allen-John; Danise Henriquez; Hurley-Christine; Rosch- Mark; Gambuzza-Dina; Beyers-John; InternalAudit; Valcheva-Svilena; Powell-Barbara Subject: ADD-ON Item S4 09/10/2025 BOCC Meeting Attachments: AIS 4546 S4 WITH BACKUP.pdf Follow Up Flag: Follow up Flag Status: Flagged Good afternoon, Please be advised,the following Add On Item is set for inclusion day-of meeting prior to the approval of the Agenda: "Approval to execute settlement agreement in the matter of the New National Opioids Settlement:Secondary Manufacturers, Reference No. CL-1770486, and authorization for the County Attorney or his designee to sign all necessary documents." The Agenda Item Summary is attached.Once approved,this will be considered Add On Item S4. Sincerely, )V,rystaC crovuez Executive Administrator Monroe County Administrator's Office 1100 Simonton Street,Suite 2-20S Key West, FL 33040 Office:30S-292-4441 Cell:30S-8SO-8694 Courier Stop#1 Notary Public www.ri"ioriroeco�,,iirity.-fu..gov gorriez..kry:st,, 1.@ri"ioriroeco�,,iirity..-fl..gov ,.airity..fl.gov PLEASE NOTE: FLORIDA HAS A VERY BROAD RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO OR FROM THE COUNTY REGARDING COUNTY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC AND MEDIA UPON REQUEST. YOUR EMAIL COMMUNICATION MAY BE SUBJECT TO PUBLIC DISCLOSURE. 1 S4 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor James K.Scholl,District 3 The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2 Craig Cates,District 1 David Rice,District 4 Holly Merrill Raschein,District 5 Board of County Commissioners Meeting September 10, 2025 Agenda Item Number: S4 2023-4546 BULK ITEM: No DEPARTMENT: County Attorney TIME APPROXIMATE: STAFF CONTACT: Anjelica Harden-Ivanoski N/A AGENDA ITEM WORDING: Approval to execute settlement agreement in the matter of the New National Opioids Settlement: Secondary Manufacturers, Reference No. CL-1770486, and authorization for the County Attorney or his designee to sign all necessary documents. ITEM BACKGROUND: This item seeks approval to documents necessary to settle class action litigation between Monroe County, on the one hand, and eight national manufacturers (Alvogen, Amneal, Apotex, Hikma, Indivor, Mylan, Sun, and Zydus) (collectively "Secondary Manufacturers Settling Defendants"), on the other hand. The Opioids Implementation Administrator has requested approval of settlement documents prior to 10/8/2025. On 4/3/2019, Monroe County filed a lawsuit against manufacturers and distributors, including several national retail pharmacy chains, in the federal district court for the Southern District of Florida, for damages caused to the County by opioids manufactured and distributed by the defendants. The lawsuit was later removed and consolidated with other cases filed by other states and local governments, in multi district litigation(MDL)pending in Ohio. In addition, some states, including Florida and other local governments, filed their own separate suits in their respective state courts. In September 2021, the Board of County Commissioners approved Monroe County Resolution No. 285- 2021, approving in principle a settlement with the Settling Defendants along the lines of the Memorandum of Understanding ("MOU") attached to the Resolution. The settlement documents with the Settling Defendants have now been circulated by the State, and are attached to this agenda item. 1 PREVIOUS RELEVANT BOCC ACTION: 09/10/2025: BOCC approved plan for FY 2026 09/11/2024: BOCC approved plan for FY 2025 INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval to execute Settlement Agreement. DOCUMENTATION: nationalopioid—settlement—notice—settlement—overview.pdf National Opioid Settlement.pdf FINANCIAL IMPACT: 2 National Opioid Settlement: Purdue Pharma L.P. Rubris Reference Number: CL-1747970 T1111iu1' A/0,0,170- 0_"f 1A11/7"I 111141^u 111110, IIII1,0 0 4i,1'170,1A/ ,1[10 01/'/'"I AIET1 PURDUE PHARMA L.P. & SACKLER FAMILY SETTLEMENT OVERVIEW A proposed nationwide settlement agreement has been reached with Purdue (and certain of its affiliates) and the Sackler family concerning alleged misconduct related to opioids. The proposed settlement is being implemented in connection with Purdue's bankruptcy proceedings, and consists of, among other things, a settlement of Purdue's claims against the Sacklers and certain other parties (referred to as the "Estate Settlement"), and a settlement of direct claims against the Sacklers held by States, local governments and other creditors (the "Direct Settlement", and together with the Estate Settlement, the "Settlement"). The Settlement contemplates that the Sacklers will be paying an aggregate of $6.5 billion in 16 payments over 15 years, including $1.5 billion on the settlement's Effective Date (expected to be in 2026), though some amounts are subject to discounted prepayments. These amounts are in addition to amounts available from the Purdue estate including amounts available on the Effective Date(expected to be around$900 million)and amounts that may be paid in the future. The Settlement also contains injunctive relief governing opioid dispensing practices and requires the successor-in-interest of Purdue Pharma L.P. to implement safeguards to prevent diversion of prescription opioids, and also restrict certain Sacklers from directly or indirectly engaging in the manufacturing or sale of opioids, as detailed in the Settlement. The proposed settlement has two key participation steps now that all eligible states and territories elected to participate in the Direct Settlement. First, eligible subdivisions within each participating state decide whether to participate in the Direct Settlement. The Direct Settlement is documented in the Governmental Entity and Shareholder Direct Settlement Agreement, which is commonly referred to as the "GESA". The more subdivisions that participate, the more funds flow to that state and its subdivisions. Any subdivision that does not participate cannot directly share in any of the Direct Settlement funds, even if the subdivision's state is settling and other participating subdivisions are sharing in settlement funds. YOU MUST PARTICIPATE IN THE DIRECT SETTLEMENT BY RETURNING YOUR PARTICIPATION FORM IN ORDER TO RECEIVE THE BENEFITS OF THE SETTLEMENT. Second, concurrently with the solicitation of eligible subdivisions to participate in the Direct Settlement, votes will be solicited for approval of Purdue Pharma L.P.'s bankruptcy plan, which plan will provide distributions in respect of the Estate Settlement. NOT ALL SUBDIVISIONS ELIGIBLE TO PARTICIPATE IN THE SETTLEMENT WILL RECEIVE PACKAGES TO VOTE ON THE PLAN. Please note that this is NOT a solicitation or a request for subdivisions to submit votes on the Purdue bankruptcy plan.This settlement package only pertains to a decision to participate in the Direct Settlement with the Sacklers. 3 If you receive a package to vote on the plan you should follow the applicable instructions for voting. PLEASE NOTE THAT VOTING ON THE PLAN IS SEPARATE FROM PARTICIPATION IN THE DIRECT SETTLEMENT. IT IS NOT NECESSARY TO VOTE ON THE PLAN IN ORDER TO RECEIVE THE BENEFITS OF THE SETTLEMENT. WHO IS RUBRIS INC.AND WHAT IS THE IMPLEMENTATION ADMINISTRATOR? The Direct Settlement provides that an Implementation Administrator will provide notice and manage the collection of participation forms. Rubris Inc. is the Implementation Administrator for the Direct Settlement and was also retained for the prior national opioid settlements. WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE? Your state has elected to participate in the Settlement, and therefore your subdivision may participate in the Direct Settlement. This notice is also being sent directly to counsel for such subdivisions if the Implementation Administrator has their information. If you are represented by an attorney with respect to opioid claims,please contact them. Subdivisions can participate in the Settlement whether or not they filed a lawsuit or are represented. WHERE CAN YOU FIND MORE INFORMATION? Detailed information about the Settlement, including each settlement agreement, may be found at: hLVs://nationalopioidsettlement.com/purdue-sacklers-settlements/. This website will be updated to include information about how the Settlement is being implemented in most states and how funds will be allocated within your state. You are encouraged to review the terms of the settlement agreements and discuss the terms and benefits with your counsel,your Attorney General's Office, and other contacts within your state. Your subdivision will need to decide whether to participate in the proposed Settlement, and subdivisions are encouraged to work through this process before the September 30,2025 deadline. HOW DO YOU PARTICIPATE IN THE SETTLEMENT? The Settlement requires that you take affirmative steps to "opt in"to the Settlement. In the next few weeks, you will receive documentation and instructions from the Implementation Administrator. In order to participate in the settlement, a subdivision must sign and return the required documentation. Please add the following email addresses to your"safe"list so emails do not go to spam/junk folders: dse_na3@adocusign.net and opioidsparticipation@arubris.com. Please monitor your email for the Participation Form and instructions. All required documentation must be signed and returned on or before September 30,2025. - 2 - 4 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A New National Opioids Settlement: Secondary Manufacturers Opioids Implementation Administrator MONROE COUNTY, FL Reference Number: CL-1770486 TO LOCAL POLITICAL SUBDIVISIONS: THIS PACKAGE CONTAINS DOCUMENTATION TO PARTICIPATE IN THE NEW NATIONAL OPIOIDS SECONDARY MANUFACTURERS SETTLEMENTS. YOU MUST TAKE ACTION IN ORDER TO PARTICIPATE. Deadline: October 8, 2025 A new proposed national opioids settlement (""Secondary Manufacturers Settlements") has been reached with eight opioids manufacturers: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (""Settling Defendants"). This Combined Participation Package is a follow-up communication to the Notice of National Opioids Settlement recently received electronically by your subdivision. You are receiving this Combined Participation Package because the State of Florida is participating in the Secondary Manufacturers Settlements. If a state is not eligible to or does not participate in the settlement with a particular manufacturer, the subdivisions in that state are not eligible to participate in that manufacturer's settlement. This electronic envelope contains: • A Combined Participation Form for the Secondary Manufacturers Settlements that your subdivision is eligible to join, including a release of any claims. The Combined Participation Form must be executed, without alteration, and submitted on or before October 8, 2025, in order for your subdivision to be considered for initial participation calculations and payment eligibility under the Secondary Manufacturers Settlement. Based upon Combined Participation Forms received on or before October 8, 2025, the subdivision participation rate will be used to determine whether participation is sufficient for each settlement to move forward and whether a state earns its maximum potential payment under each settlement. If a settlement moves forward, your release will become effective. If a settlement does not move forward, that release will not become effective. Any subdivision that does not participate cannot directly share in the settlement funds, even if the subdivision's state is settling and other participating subdivisions are sharing in settlement funds. Any subdivision that does not participate may also 5 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A reduce the amount of money for programs to remediate the opioid crisis in its state. Please note, a subdivision will not necessarily directly receive settlement funds by participating; decisions on how settlement funds will be allocated within a state are subject to intrastate agreements or state statutes. You are encouraged to discuss the terms and benefits of the Secondary Manufacturers Settlements with your counsel, your Attorney General's Office, and other contacts within your state. Many states are implementing and allocating funds for this new settlement the same as they did for the prior opioids settlements but states may choose to treat this settlement differently. Information and documents regarding the Secondary Manufacturers Settlements, implementation in your state, and how funds will be allocated within your state can be found on the national settlement website at ::,. .ii . ..11. .11 .a .......... .. a. ................ . ::: :al_ ai . ai . ......:.,,_ .iim. . This website will be supplemented as additional documents are created. This Participation Packet is different than the participation packet you recently received from Rubris concerning a settlement with Purdue Pharma, L.P, and the Sackler Family. The Secondary Manufacturers Settlements discussed in this Participation Packet are different than the settlement with Purdue and the Sacklers, and you may participate in the Secondary Manufacturers Settlements regardless of whether you join the Purdue and Sackler settlement. How to return signed forms: There are three methods for returning the executed Combined Participation Form and any supporting documentation to the Implementation Administrator: (1)Electronic Signature via DocuSign: Executing the Combined Participation Form electronically through DocuSign will return the signed form to the Implementation Administrator and associate your form with your subdivision's records. Electronic signature is the most efficient method for returning the Combined Participation Form, allowing for more timely participation and the potential to meet higher settlement payment thresholds, and is therefore strongly encouraged. (2)Manual Signature returned via DocuSign: DocuSign allows forms to be downloaded, signed manually, then uploaded to DocuSign and returned automatically to the Implementation Administrator. Please be sure to complete all fields. As with electronic signature, returning a manually signed Combined Participation Form via DocuSign will associate your signed forms with your subdivision's records. (3)Manual Signature returned via electronic mail: If your subdivision is unable to return an executed Combined Participation Form using DocuSign, the signed Combined Participation Form may be returned via electronic mail to 112J.. ?.d. .112g::;:ais ai..11 .::ai al f al°°,.II .II`:ai. .:,.;.. al Please include the name, state, and 6 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A reference ID of your subdivision in the body of the email and use the subject line Combined Settlement Participation Form - [Subdivision Name, Subdivision State] - [Reference ID]. Detailed instructions on how to sign and return the Combined Participation Form, including changing the authorized signer, can be found at I .:It s„ natlionallo liolidsettllement.coirn addiitlionall settllerneints . You may also contact .II ...................................'' II . .u`:::':'ii :w.ii..11 .:':..ii. .il f .il° ;,Il .il`:ai. ,,,�;.o im. The sign-on period for subdivisions ends on October 8, 2025. If you have any questions about executing the Combined Participation Form, please contact your counsel or the Implementation Administrator at .II ...................................'' III. .it:::;:a; :il..11 .::........................f .pa L,f.Ib .iC:ai. .,;_�:;.o im. Thank you, Secondary Manufacturers Settlements Implementation Administrator The Implementation Administrator is retained to provide the settlement notice required by the Secondary Manufacturers Settlements and to manage the collection of the Combined Participation Form. 7 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A EXHIBIT K Secondary Manufacturers' Combined Subdivision Participation and Release Form ("Combined Participation Form") Governmental Entity: MONROE COUNTY State: FL Authorized Official: Address 1: Address 2: City, State,Zip: Phone: Email: The governmental entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to each of the settlements which are listed in paragraph 1 below(each a"Secondary Manufacturer's Settlement" and collectively, "the Secondary Manufacturers' Settlements"), and acting through the undersigned authorized official, hereby elects to participate in each of the Secondary Manufacturers' Settlements,release all Released Claims against all Released Entities in each of the Secondary Manufacturers' Settlements, and agrees as follows. 1. The Participating Entity hereby elects to participate in each of the following Secondary Manufacturers' Settlements as a Participating Entity: a. Settlement Agreement for Alvogen, Inc. dated April 4, 2025. b. Settlement Agreement for Apotex Corp. dated April 4, 2025. C. Settlement Agreement for Amneal Pharmaceuticals LLC dated April 4, 2025. d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025. e. Settlement Agreement for Indivior Inc. dated April 4, 2025. f. Settlement Agreement for Viatris Inc. ("Mylan") dated April 4, 2025. g. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4, 2025. h. Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. dated April 4, 2025. 2. The Governmental Entity is aware of and has reviewed each of the Secondary Manufacturers' Settlements, understands that all capitalized terms not defined in this Combined Participation Form have the meanings defined in each of the Secondary Manufacturers' Settlements, and agrees that by executing this Combined Participation Form, the Governmental Entity elects to participate in each of the Secondary Manufacturers' Settlements and become a Participating Subdivision as provided in each of the Secondary Manufacturers' Settlements. 3. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed against any Released Entity in each of the Secondary Manufacturers' Settlements. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity 0 0 K-1 0 8 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A authorizes the Plaintiffs' Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice for each of the manufacturers listed in paragraph 1 above substantially in the form found at https:llnationalopioidsettlement.com/additional-settlementsl 4. The Governmental Entity agrees to the terms of each of the Secondary Manufacturers' Settlements pertaining to Participating Subdivisions as defined therein. 5. By agreeing to the terms of each of the Secondary Manufacturers' Settlements and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 6. The Governmental Entity agrees to use any monies it receives through each of the Secondary Manufacturers' Settlements solely for the purposes provided therein. 7. The Governmental Entity submits to the jurisdiction of the court and agrees to follow the process for resolving any disputes related to each Secondary Manufacturer's Settlement as described in each of the Secondary Manufacturers' Settlements.' 8. The Governmental Entity has the right to enforce each of the Secondary Manufacturers' Settlements as provided therein. 9. The Governmental Entity,as a Participating Subdivision,hereby becomes a Releasor for all purposes in each of the Secondary Manufacturers' Settlements, including without limitation all provisions related to release of any claims,' 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 foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor,provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely,unconditionally,and irrevocably 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 Released Claims against any Released Entity in each of the Secondary Manufacturers' Settlements in any forum whatsoever. The releases provided for in each of the Secondary Manufacturers' Settlements are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in each of the Secondary Manufacturers' Settlements the broadest possible bar against any liability relating in any way to Released ' See Settlement Agreement for Alvogen, Inc. Section VII.F.2; Settlement Agreement for Apotex Corp. Section VII.F.2; Settlement Agreement for Amneal Pharmaceuticals LLC Section VII.F.2; Settlement Agreement for Hikma Pharmaceuticals USA Inc.Section VII.F.2;Settlement Agreement for Indivior Section VI.F.2;Settlement Agreement for Mylan Section VI.F.2; Settlement Agreement for Sun Pharmaceutical Industries,Inc. Section VII.F.2; Settlement Agreement for Zydus Pharmaceuticals(USA)Inc. Section VII.F.2. 2 See Settlement Agreement for Alvogen, Inc. Section XI; Settlement Agreement for Amneal Pharmaceuticals LLC Section X; Settlement Agreement for Apotex Corp. Section XI; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section XI; Settlement Agreement for Indivior Section X; Settlement Agreement for Mylan Section X; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section XI; Settlement Agreement for Zydus Pharmaceuticals(USA)Inc. Section XI. 0' 0 K-2 ' 9 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A Claims and extend to the full extent of the power of the Governmental Entity to release claims. Each of the Secondary Manufacturers' Settlements shall be a complete bar to any Released Claim against that manufacturer's Released Entities. 10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in each of the Secondary Manufacturers' Settlements. 11. In connection with the releases provided for in each of the Secondary Manufacturers' Settlements, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions,rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes,or assumes to be true with respect to the Released Claims in each of the Secondary Manufacturers' Settlements, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles,releases and discharges,upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist,whether through ignorance,oversight,error,negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities' decision to participate in each of the Secondary Manufacturers' Settlements. 12. The Governmental Entity understands and acknowledges that each of the Secondary Manufacturers' Settlements is an independent agreement with its own terms and conditions. Nothing herein is intended to modify in any way the terms of any of the Secondary Manufacturers' Settlements,to which Governmental Entity hereby agrees,aside from the exceptions in paragraph 13 below. To the extent this Combined Participation Form is interpreted differently from any of the Secondary Manufacturers' Settlements in any respect, the individual Secondary Manufacturer's Settlement controls. 13. For the avoidance of doubt, in the event that some but not all of the Secondary Manufacturers' Settlements proceed past their respective Reference Dates, all releases and other commitments or obligations shall become void only as to those Secondary Manufacturers' Settlements that fail to proceed past their Reference Dates.All releases and other commitments or obligations (including those contained in this Combined Participation Form) shall remain in full effect as to each Secondary Manufacturer's Settlement that proceeds past its Reference Date, and this Combined Participation Form need not be modified, returned, or destroyed as long as any Secondary Manufacturer's Settlement proceeds past its Reference Date. 140-0�� K-3 10 Docusign Envelope ID:7DEDF8BE-EBEO-41CO-9C16-F6E7BOB1C17A I have all necessary power and authorization to execute this Combined Participation Form on behalf of the Governmental Entity. Signature: Name: Title: Date: 0' 0 K-4 } 0 11