06. Opioid Litigation Settlement payment

M E M O TO: County Commissioners FROM: Robert W. Wilson DATE: August 11, 2022 SUBJECT: Update – Opioid Litigation Settlement Payments On August 1st Tracy Peters briefed the Board on a settlement notification Cass County received related to the nationwide opioid litigation. The notice included a distribution schedule to various funds and political subdivisions in North Dakota. Ms. Peters also informed the Board of several other settlement requirements she learned about during follow-up conversations with our litigation counsel. At that time the full scope of timeframes and requirements was not clear and the Commission tabled action until the meeting on August 15, 2022. The County Administrator and State’s Attorney’s Office were directed to gather additional information and report back to the Board. Mr. Burdick, Ms. Peters and Mr. Wilson met with our litigation counsel, Roxanna Pierce and co-counsel on August 10, 2022. From this conversation it was clear the current settlement and proposed payment are two elements in a series of settlements and payments that should be understood collectively. Current Settlement: The attached information from distribution administrator Brown Greer is related to one of multiple settlements anticipated to provide compensation to North Dakota entities including Cass County. It involves opioid manufacturer Johnson and Johnson (Janssen) and distributors AmerisourceBergen, Cardinal Health and McKesson. The first payment to Cass County from the Janssen settlement will be received before the end of August in the amount of $20,461.69. A second payment in the same amount will be received before the end of 2022. Beginning in 2023, yearly payments in the amount of $20,461.69 will continue for 13 years. (Total amount: $306,925.) Our litigation counsel has advised Cass County should consider the following actions at the meeting on August 15th: • to create an ‘Opioid Abatement Fund’ to receive the initial – and future – settlement payments. • Direct County Administrator Robert Wilson, as the ‘Authorized Official’ to register Cass County with the National Opioids Settlements Portal County Administrator Robert W. Wilson 701-241-5770 wilsonro@casscountynd.gov PO Box 2806 211 Ninth Street South Fargo, North Dakota 58108 www.casscountynd.gov