ORDINANCE NO. 250787
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Sponsor: City Attorney
Authorizing and accepting opioid settlements with Sandoz, Inc, Purdue Pharma/Sackler, and the Secondary Distributors (Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus); and authorizing the City Attorney to settle these claims and further negotiate with the State of Missouri over the City’s portion of Purdue Pharma/Sackler Family settlement proceeds pursuant to the MOU executed between the City and the State of Missouri. **** This item is scheduled to be heard at 11:45 am.****
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WHEREAS, the people of the City of Kansas City have been harmed by a national and state-wide opioid epidemic caused, in part, by fraudulent marketing and licit and illicit opioid use and distribution throughout the city and the State of Missouri; and
WHEREAS, the City joined a nationwide movement of hundreds of cities, counties and other governmental entities seeking damages against various manufacturers and distributors of opioids for economic damages related to items such as addiction treatment, ambulance services, first responder services, emergency room visits, law enforcement, substance abuse counseling, jail costs, other effects of overdoses and a potential host of other direct and indirect costs; and
WHEREAS, Ordinance No. 180174 authorized the City Attorney to execute legal services contracts with a joint team, consisting of Simmons Hanly Conroy and Williams Dirks Dameron, to provide legal services as lead counsel for the City in potential opioid epidemic cases and related action; and
WHEREAS, Resolution No. 220214 authorized the City Attorney to execute a memorandum of understanding (MOU) with the State of Missouri to govern the allocation of opioid settlement funds between the state and local governments resulting from certain national opioid litigation settlements; and
WHEREAS, the structure of settlements with certain pharmaceutical supply chain entities currently facing investigations and litigation in Missouri and throughout the country have taken the form of national settlement agreements with Missouri receiving a share of the proceeds of those national agreements to abate the opioid crisis within the state; and
WHEREAS, settlements are being finalized with various manufacturers and distributors, with the City expecting to receive its share of opioid litigation proceeds; and
WHEREAS, although all settlement amounts with other defendants, and the City’s portion of proceeds, have not been determined, the City Attorney seeks authorization to settle the City’s claims with various defendants when settlement numbers are finalized; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That opioid settlements with Sandoz, Inc, Purdue Pharma/Sackler, and the Secondary Distributors (Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus) are hereby authorized and accepted.
Section 2. That the City Attorney is authorized to settle these claims and further negotiate with the State of Missouri over the City’s portion of Purdue Pharma/Sackler Family settlement proceeds pursuant to the MOU executed between the City and the State of Missouri.
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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
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William Choi
Interim Director of Finance
Approved as to form:
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Matthew Gigliotti
City Attorney