Item 4G - MemoCITY OF
SOUTH LAKE 4G
MEMORANDUM
March 1, 2022
To: Mayor and City Council
From: James Brandon, Chief of Police
Subject: Approve Resolution No. 22-006 authorizing the City Manager to execute
global opioid settlement documents.
Action
Requested: The purpose of this item is to seek City Council approval of
Resolution No. 22-006, authorizing the City Manager to execute the
global opioid settlement documents to receive funding from two
additional settlement agreements with opioid manufacturers, Endo
and Teva.
Background
Information: The opioid settlements with Endo and Teva are part of the larger effort
by the State of Texas and a broad coalition of other states and
subdivisions to reach final agreements with several opioid
manufacturers and pharmaceutical distributors to resolve claims for
their role in the opioid crisis.
Previously, on December 7, 2021, City Council approved Resolution
No. 21-052 to authorize the City Manager to execute global opioid
settlement documents with four other companies and to adopt the
Texas Term Sheet, which is required to receive funding from each
settlement. (In 2021, Texas passed SB 1827 adopting the term sheet
and providing for a plan of distribution for any funds received.)
Participating subdivisions will receive direct payments under the
settlement and are also eligible to receive funding for opioid abatement
programs from the Opioid Council. The deadline for subdivisions to sign
on to the Endo and Teva settlements is March 10, 2022.
Financial
Considerations: The total Texas Subdivision Share of the Teva settlement is
approximately $19,730,437.50, and the total Subdivision Share of the
Endo settlement is $8,373,408.75. The funds will be distributed to
participating subdivisions in accordance with the Texas Term Sheet.
Under the terms of the agreement, the money shall be directed to uses
with a past or future "opioid nexus," that being some use which was
impacted by opioids.
Strategic Link: C1 - Achieve the highest standards of safety & security.
Items 4G:
Approve Resolution No. 22-006 authorizing the City Manager to execute global opioid
settlement documents.
City Council Meeting Date — March 1, 2022
Page 2 of 2
Citizen Input/
Board Review: N/A
Legal Review: The proposed resolution was reviewed by the City Attorney's Office.
Supporting
Documents:
1. Resolution No. 22-006, authorizing the City Manager to
execute global opioid settlement documents.
2. Exhibit A — Endo Settlement Release Form
3. Exhibit B — Teva Settlement Release Form
Staff
Recommendation: Staff recommends approval of Resolution No. 22-006 as proposed.
RESOLUTION NO. 22-006
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
GLOBAL OPIOID SETTLEMENT DOCUMENTS RELATING TO THE
TEVA PHARMACEUTICAL COMPANIES AND THE ENDO
PHARMACEUTICAL COMPANIES.
WHEREAS, the City of Southlake ("City") is a home rule City acting under its
Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas
Constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the City has obtained information indicating that certain drug
companies and their corporate affiliates, parents, subsidiaries, and such other defendants
as may be added to the litigation (collectively, "Defendants") have engaged in fraudulent
and/or reckless marketing and/or distribution of opioids that have resulted in addictions
and overdoses; and
WHEREAS, the actions, conduct, and misconduct of these Defendants have
resulted in significant financial cost to the City; and
WHEREAS, on May 13, 2020, the State of Texas, through the Office of the
Attorney General, and a negotiation group for Texas political subdivisions entered into an
Agreement entitled Texas Opioid Abatement Fund Council and Settlement Allocation
Term Sheet (hereafter, the Texas Term Sheet) approving the allocation of any and all
opioid settlement funds within the State of Texas. The Texas Term Sheet is attached
hereto as Exhibit A; and
WHEREAS, the City previously resolved to adopt the Texas Term Sheet, and to
participate in settlement agreements related thereto; and
WHEREAS, the State of Texas has negotiated a settlement agreement with Endo
Health Solutions Inc., Endo Pharmaceuticals Inc., Endo International plc, Par
Pharmaceutical, Inc., and Par Pharmaceutical Companies, Inc. (collectively "Endo"),
resolving litigation and potential litigation between Endo and the state and its
subdivisions; and
WHEREAS, the State of Texas has negotiated a settlement agreement with Teva
Pharmaceutical Industries Ltd.; Teva Pharmaceuticals USA, Inc.; Cupric Holding Co.,
Inc.; Teva Pharmaceutical Holdings Cooperative U.A.; Teva Pharmaceuticals Europe
B.V.; Cephalon, Inc.; Watson Laboratories, Inc.; Actavis LLC; Actavis Pharma, Inc. f/k/a
Watson Pharma, Inc.; Warner Chilcott Co., LLC; Actavis South Atlantic LLC; Actavis
Elizabeth LLC; Actavis Mid Atlantic LLC; Actavis Totowa LLC; Actavis Kadian LLC;
Actavis Laboratories UT, Inc. f/k/a Watson Laboratories Inc. -Salt Lake City; Actavis
Laboratories FL, Inc. f/k/a Watson Laboratories, Inc. -Florida; and Anda, Inc. (collectively
"Teva"), resolving litigation and potential litigation between Teva and the state and its
subdivisions;
Page 1
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, CITY OF
SOUTHLAKE, TEXAS THAT:
SECTION 1.
Per the terms of the previously -adopted Texas Term Sheet, the City Council
hereby authorizes the City Manager to execute in the City's behalf the Subdivision
Settlement Participation Forms and settlement agreement between Endo and the State
of Texas and the subdivisions therein. Said agreement is attached hereto as Attachment
A.
In addition, and also per the terms of the previously -adopted Texas Term Sheet,
the City Council hereby authorizes the City Manager to execute in the City's behalf the
Subdivision Settlement Participation Forms and settlement agreement between Teva and
the State of Texas and the subdivisions therein. Said agreement is attached hereto as
Attachment B.
SECTION 2.
Upon execution of the Subdivision Settlement Participation Form, the City
Manager is authorized to send executed copies, with any required additional
documentation, to the Office of the Attorney General, as required for participation in this
settlement.
SECTION 3.
This resolution shall be in full force and effect after its passage and publication as
required by law, and it is so resolved.
PASSED AND APPROVED THIS DAY OF ,
2022.
MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM AND LEGALITY:
CITY ATTORNEY
ADOPTED:
EFFECTIVE:
Page 2
Exhibit A
TEXAS SUBDIVISION AND SPECIAL DISTRICT
ELECTION AND RELEASE FORM
This Election and Release Form for Texas Participating Subdivisions) resolves opioid-
related Claims against Endo/Par under the terms and conditions set forth in the Endo/Par Texas
State -Wide Opioid Settlement Agreement between Endo/Par, the State of Texas, and the Counties
of Dallas, Bexar, Harris and Tarrant (the "Agreement"), the provisions of which are here
incorporated by reference in their entirety. Upon executing this Election and Release Form, a
Participating Subdivision agrees that, in exchange for the consideration described in the
Agreement, the Participating Subdivision is bound by all the terms and conditions of the
Agreement, including but not limited to the Release found in Section VII of the Agreement and
the provisions concerning participation by Subdivisions or Special Districts in Section VIII, and
the Participating Subdivision and its signatories expressly represent and warrant on behalf of
themselves that they have, or will have obtained on or before the Effective Date or on or before
the execution of this Election and Release Form if executed after the Effective Date, the authority
to settle and release, to the maximum extent of the Subdivision's and Special District's power, all
Released Claims related to Covered Conduct. If this Election and Release Form is executed on or
before the Initial Participation Date, the Participating Subdivision shall dismiss Endo/Par and all
other Released Entities with prejudice from all pending cases in which the Participating
Subdivision has asserted Covered Claims against Endo/Par or a Released Entity no later than the
Initial Participation Date. If this Election and Release Form is executed after the Initial
Participation Date, the Participating Subdivision shall dismiss Endo/Par and all other Released
' The Agreement defines a "Participating Subdivision" as a Subdivision or Special District that signs this Election
and Release Form and meets the requirements for becoming a Participating Subdivision under subsection VIII.A. of
the Agreement.
A-1
745274877.20
Entities with prejudice from all pending cases in which the Participating Subdivision has asserted
Covered Claims against Endo/Par or a Released Entity concurrently with the execution of this
form. By executing this Election and Release Form, the Participating Subdivision submits to the
jurisdiction of the Honorable Robert Schaffer, In Re: Texas Opioid Litigation, MDL No. 18-0358,
Master File No. 2018-63587, in the 152nd Judicial District Court, Harris County, Texas.
Dated:
Texas Subdivision Name: City of Southlake
IRA
Shana Yelverton, City Manager
1400 Main Street, Suite 460
Southlake, Texas 76092
(817) 748-8001
syelverton@ci.southlake.tx.us
A-2
745274877.20
Exhibit B
TEXAS SUBDIVISION AND SPECIAL DISTRICT
ELECTION AND RELEASE FORM
This Election and Release Form for Texas Participating Subdivisions' resolves opioid-
related Claims against Teva under the terms and conditions set forth in the Teva Texas State -
Wide Opioid Settlement Agreement between Teva, the State of Texas, and the Counties of
Dallas, Bexar, Harris and Tarrant (the "Agreement"), the provisions of which are here
incorporated by reference in their entirety. Upon executing this Election and Release Form, a
Participating Subdivision agrees that, in exchange for the consideration described in the
Agreement, the Participating Subdivision is bound by all the terms and conditions of the
Agreement, including but not limited to the Release found in Section VII of the Agreement and
the provisions concerning participation by Subdivisions or Special Districts in Section VIII, and
the Participating Subdivision and its signatories expressly represent and warrant on behalf of
themselves that they have, or will have obtained on or before the Effective Date or on or before
the execution of this Election and Release Form if executed after the Effective Date, the authority
to settle and release, to the maximum extent of the Subdivision's and Special District's power,
all Released Claims related to Covered Conduct. If this Election and Release Form is executed
on or before the Initial Participation Date, the Participating Subdivision shall dismiss the
Released Claims with prejudice and sever Teva and all other Released Entities from all pending
cases in which the Participating Subdivision has asserted Covered Claims against Teva or a
Released Entity no later than the Initial Participation Date. If this Election and Release Form is
executed after the Initial Participation Date, the Participating Subdivision shall dismiss the
' The Agreement defines a "Participating Subdivision" as a Subdivision or Special District that
signs this Election and Release Form and meets the requirements for becoming a Participating
Subdivision under subsection VIII.A. of the Agreement.
1
Released Claims with prejudice and sever Teva and all other Released Entities from all pending
cases in which the Participating Subdivision has asserted Covered Claims against Teva or a
Released Entity concurrently with the execution of this form. By executing this Election and
Release Form, the Participating Subdivision submits to the jurisdiction of the Honorable Robert
Schaffer, In Re: Texas Opioid Litigation, MDL No. 18-0358, Master File No. 2018-63587, in the
152nd Judicial District Court, Harris County, Texas.
Dated:
Texas Subdivision Name: City of Southlake
go
Shana Yelverton, City Manager
1400 Main Street, Suite 460
Southlake, Texas 76092
(817) 748-8001
syelverton@ci.southlake.tx.us
2