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4.4 SR 12-06-2021Request for Action To Item Number Mayor and Ci T Council 4.4 Agenda Section Meeting Date Prepared by Consent December 6, 2021 Cal Portner, City Administrator Item Description Reviewed by Select and Direct City Administrator as City of jare Shepherd, City Attorney Elk River Signatory for National Opioids Reviewed by Settlement Peter Beck, City Attorney Action Requested Select and Direct, by motion, City Administrator Calvin P. Portner as the City of Elk River signatory for the National Opioids Settlement. Background/Discussion We have been informed by the Minnesota Attorney General that we are eligible to be part of two proposed nationwide settlements that would resolve all opioid litigation brought by states and local political subdivision against the three largest pharmaceutical distributors and one manufacturer. After consultation with our legal counsel, they recommend participation in the settlement. They indicated that the more local governments approve, the more money the state will receive and too, ultimately Sherburne County, which is in our best interest. The settlement forms require electronic signatures. Counsel also indicated that because it is a settlement of future claims, it is best the Council agree to participate and direct the city administrator to complete the paperwork on your behalf. Financial Impact N/A Mission/Policy/Goal Elk River Mission Attachments Letter from Minnesota Office of the Attorney General Memo regarding opioid settlement National Opioids Settlement Participant Form and Instructions The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires pi ospei ly. M TUREJ Updated.• August 2020 The Office of 4 Minnesota Attorney General Keith Ellison helping people afford their lives and live with dignity and respect • www.ag.state.mn.us S November 3, 2021 Minnesota Cities and Counties RE: Opioid Settlements Dear Sir or Madam: I am writing on behalf of Attorney General Keith Ellison to remind you to register your city or county to receive required documentation to participate in the national opioid settlements related to litigation against the Distributors and Johnson & Johnson. By now, you should have received the enclosed notice from the noticing agent relating to the opioid settlements. In order for the settlement sign -on process to work efficiently, it is imperative that you: First, go to the national settlement web Second, register your county or city. and If you have already registered, I apologize for the interruption. If you have not registered, registering will only take a minute and does not commit your subdivision to signing on to the settlements. Registration requires knowing who will sign -on to the settlement for your subdivision, an e-mail address for the sign -on form to be electronically sent, and you to utilize the registration code in the notice. So far, only 44 subdivisions of 188 that received the notice have registered. I have attached to this letter a list of registration codes for every city and county in Minnesota that received the notice to make registration even easier. If you don't register, you will not get the sign -on form electronically. We urge you to register at your earliest convenience. If you have questions for the Minnesota Attorney General's Office, please send an e-mail to opioidskag.state.mn.us or visit www.ag.state.mn.us/opioids/. Sincerely, /s/ Evan Romanoff EVAN ROMANOFF Assistant Attorney General Enclosures: Subdivision Registration Codes Notice to Cities and Counties L 110- The Office of Minnesota Attorney General Keith Ellison helping people afford their lives and live with dignity and respect • www.ag.state.mn.us TO LOCAL POLITICAL SUBDIVISIONS: IMPORTANT INFORMATIONABOUT THE NATIONAL OPIOID SETTLEMENT. SUBDIVIMONS MUST SUBMIT SIGNED DOCUMENTATION TO PARTICIPATE. THE DEADLINE FOR PARTICIPATION TO MAXIMIZE SETTLEMENT BENEFITS IS JANUAR Y2, 2022. If your subdivision is represented by an attorney with respect to opioid claims, please immediately contact them. After years of negotiations, two proposed nationwide settlement agreements ("Settlements") have been reached that would resolve all opioid litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal Health and AmerisourceBergen ("Distributors"), and one manufacturer, Janssen Pharmaceuticals, Inc., and its parent company Johnson & Johnson (collectively, "Janssen"). The proposed Settlements require the Distributors and Janssen to pay billions of dollars to abate the opioid epidemic. Specifically, the Settlements require the Distributors to pay up to $21 billion over 18 years and Janssen to pay up to $5 billion over no more than 9 years, for a total of $26 billion (the "Settlement Amount"). Of the Settlement Amount, approximately $22.7 billion is earmarked for use by participating states and subdivisions to remediate and abate the impacts of the opioid crisis. The Settlements also contain injunctive relief provisions governing the opioid marketing, sale and distribution practices at the heart of the states' and subdivisions' lawsuits and further require the Distributors to implement additional safeguards to prevent diversion of prescription opioids. Each of the proposed Settlements has two key participation steps. First, each state decides whether to participate in the Settlement. Minnesota has joined both Settlements. Second, the subdivisions within each participating state must then decide whether to participate in the Settlements. Generally, the more subdivisions that participate, the greater the amount of funds that flow to that state and its participating subdivisions. Any subdivision that does not participate cannot directly share in any of the settlement funds, even if the subdivision's state is settling and other participating subdivisions are sharing in settlement funds. This letter is part of the formal notice required by the Settlements. 1 DocuSign Envelope ID: 2F66D48D-B2D7-495D-BE55-719AA73125EF PARTICIPATION INSTRUCTIONS Thank you for registering your subdivision on the national settlement website and for considering participating in the proposed Settlement Agreement with Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively "Janssen"). This virtual envelope contains a Participation Form including a release of claims. The Participation Form in this envelope must be executed, without alteration, and submitted in order for your subdivision to be considered potentially "participating." The sign -on period for subdivisions ends on January 2, 2022. On or after that date, the states (in consultation with the subdivisions) and the Settling Distributors will determine whether the subdivision participation rate is sufficient for the settlement to move forward. If the deal moves forward, your release will become effective. If it does not, it will not. As a reminder, if you have not already started your review of the settlement documentation, detailed information about the Settlements may be found at: . This national settlement website also includes links to information about how the Settlements are being implemented in your state and how settlement funds will be allocated within your state, including information about, and links to, any applicable allocation agreement or legislation. This website will be supplemented as additional documents are created. The Minnesota Attorney General's Office has also set up a website at www.ag.state.mn.us/opioids. If you have questions, please contact your counsel (if you have counsel on opioids matters) or send an e-mail to the Attorney General's Office at opioids@ag.state.mn.us. DocuSign Envelope ID: 2F66D48D-B2D7-495D-BE55-719AA73125EF Settlement Participation Form Governmental Entity: Elk River city State: MN Authorized Signatory: 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 the Settlement Agreement dated July 21, 2021 ("Janssen Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Janssen Settlement, release all Released Claims against all Released Entities, and agrees as follows. The Governmental Entity is aware of and has reviewed the Janssen Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Janssen Settlement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall, within 14 days of the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. 3. The Governmental Entity agrees to the terms of the Janssen Settlement pertaining to Subdivisions as defined therein. 4. By agreeing to the terms of the Janssen Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Janssen Settlement solely for the purposes provided therein. 6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity's state where the Consent Judgment is filed for purposes limited to that court's role as provided in, and for resolving disputes to the extent provided in, the Janssen Settlement. 7. The Governmental Entity has the right to enforce the Janssen Settlement as provided therein. DocuSign Envelope ID: 2F66D48D-B2D7-495D-BE55-719AA73125EF 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Janssen Settlement, including but not limited to all provisions of Section IV (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity 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 any forum whatsoever. The releases provided for in the Janssen Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Janssen Settlement shall be a complete bar to any Released Claim. 9. In connection with the releases provided for in the Janssen Settlement, 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, 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 the Janssen Settlement. 10. Nothing herein is intended to modify in any way the terms of the Janssen Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Janssen Settlement in any respect, the Janssen Settlement controls. DocuSign Envelope ID: 2F66D48D-B2D7-495D-BE55-719AA73125EF I swear under penalty of perjury that I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity. Signature: Name: Title: Date: