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TO: Mayor Richard C. Irvin and City Council
FROM: Richard J. Veenstra
Corporation Counsel
DATE: December 16, 2021
SUBJECT:
National Multistate Opioid Litigation Settlement
PURPOSE:
To authorize the Corporation Counsel, to execute a joinder or other agreement on behalf of the City, to permit the City to participate in a settlement proposals or agreements being negotiated by the Illinois Attorney General against various opioid manufacturers and distributors.
BACKGROUND:
Like many local governmental entities, the City has been impacted by the "Opioid Crisis" in a variety of ways -- many of which led to the City incurring increased costs for police and fire responses as well as for various community services. Over the past several years, various counties and municipalities filed suit against various opioid manufacturers and distributors, and in some cases, physicians alleging that they knew that their products were dangerously addictive but did nothing to limit their availability or ubiquity. Lawsuits filed in federal court were consolidated as part of the multidistrict litigation (MDL) process and transferred to Ohio for disposition.
In 2018, the City evaluated the possibility of engaging special counsel to commence its own action against these manufacturers --- with the goal of maintaining the litigation entirely in state court so as to avoid consolidation as part of the MDL. Ultimately, on the advice of counsel, we opted not to pursue this course as it appeared likely that the Illinois Attorney General would intervene on behalf of all Illinois-party plaintiffs in the interest of achieving a global settlement. Ultimately, that is exactly what happened - and the General Assembly subsequently precluded further municipal suits against opioid defendants.
DISCUSSION:
The Attorney General is in the process of negotiating a settlement proposal in involving McKesson, Cardinal Health and AmerisourceBergen ("Distributors"), and manufacturer Janssen Pharmaceu...
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