Title
Consider and take action on a resolution authorizing participation in a new opioid settlement with the Six Remnant Defendants (CL-2025065), and authorizing the City Manager to execute all necessary documents, including the Subdivision Participation and Release Form, and to participate in any subsequent opioid settlement cases (City Attorney)
Background:
Previous Opioid Settlement:
In 2021, the City Council approved participation in the Texas Opioid Settlement through Resolution No. 2021-130, which adopted the Texas Term Sheet and Intrastate Allocation Schedule and authorized execution of subdivision participation agreements with national opioid defendants.
New Opioid Settlement:
Since that time, additional national opioid settlements have been reached. The current item concerns a new and separate national settlement with six regional pharmaceutical distributors and dispensers (the “Six Remnant Defendants”), identified under reference number CL-2025065. This settlement arises out of the national opioid litigation (MDL 2804) and is governed by a standalone settlement agreement dated February 23, 2026. This settlement is not part of the Texas Opioid Settlement structure, does not utilize the Texas Term Sheet or intrastate allocation schedule, and does not involve the Texas Attorney General. Instead, funds will be distributed directly to participating local governmental entities that elect to participate. Participation requires execution of a Combined Subdivision Participation and Release Form by the May 4, 2026 deadline.
Settlement Overview:
The Six Remnant Defendants settlement provides for a combined national payment of approximately $97.6 million to eligible participating entities for opioid abatement purposes. Each participating subdivision’s allocation is determined based on a national pro rata methodology. Exhibit E reflects that the City’s allocation percentage is approximately 0.0125855219%, resulting in an estimated payment of approximately $12,0...
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