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22-006RESOLUTION 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. I CA PASSED AND APPROVED THIS DAY OF 2022. Y R N, _AKE,�T AX yl, =0: CITY S RY v APPROVED AS TO FORM AND LEGALITY: CITY ATTORNEY ADOPTED: -b�` EFFECTIVE: Ro1k I2v 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 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 I 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 Shana Yelverton, City Manager 1400 Main Street, Suite 460 Southlake, Texas 76092 (817) 748-8001 selverton@ci.southlake.tx.us 2