To: Board of Supervisors
From: Thomas L. Geiger, County Counsel
Report Title: National Opioid Litigation: Participation in Sackler – Purdue Pharma Settlement
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Administrator, or designee, to execute legal documents necessary to participate in and receive opioid settlement funds pursuant to a settlement with Purdue Pharma and the Sackler Family in the National Prescription Opiate Litigation (the Purdue/Sackler Settlement).
FISCAL IMPACT:
The Purdue/Sackler Settlement totals approximately $8 billion, with $1.5 billion expected to come from the Purdue Pharma bankruptcy estate and $6.5 billion coming from individual members of the Sackler Family over a 15-year period. The dollar amount that the County would receive as a result of participating in the Purdue/Sackler Settlement cannot be estimated at this time due to fluctuating estate value and participation-based formulas. Of the funds coming to the State of California, 15% will go to the State, 70% will go to counties and cities as opioid abatement funds, and 15% will go to California Subdivision Fund, which will be divided among participating local governments, including the County.
BACKGROUND:
Over the past three years, states and counties have reached settlements with drug manufacturers, drug distributors, and pharmacy chains in the National Prescription Opiate Litigation, a series of lawsuits related to the opioid crisis. In January 2025, an agreement, settlement framework and allocation in principle was reached with Purdue Pharma and the Sackler Family, which will govern the Purdue/Sackler Settlement. The County is eligible to receive a percentage of the funds that will be paid to the State of California. However, to receive all funds for which it is eligible, the County is required to execute certain documents, including a Subdivision Participation and Release Form. Ninety-five percent of funding awarded to local governments must be used to abate and remediate the impacts of the opioid crisis.
CONSEQUENCE OF NEGATIVE ACTION:
If authorization to execute legal documents is not granted, the County will be unable to participate in and receive funds pursuant to the Purdue/Sackler Settlement.