To: Board of Supervisors
From: Thomas L. Geiger, County Counsel
Report Title: National Opioid Litigation: Participation in New Manufacturer Settlement
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Administrator, or designee, to opt in and execute the legal documents necessary to participate in and receive settlement funds from eight opioid manufacturers that were not part of previous national opioid settlements (“G8 Settlement”).
FISCAL IMPACT:
A national settlement requiring eight manufacturers to abate the opioid epidemic has been reached and totals approximately $1.2 billion ($844 million cash plus $355 million in medications). The State of California elected to participate in one or more of the national opioid settlements with these manufacturers and as a result the County is eligible to receive settlement funds. The dollar amount that the County would receive if it participates in the G8 Settlement cannot be estimated at this time due to participation-based formulas. The greater the number of local governments that elect to opt in, the greater the share of the national settlement California will receive.
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. On April 4, 2025, settlement agreements were reached with eight manufacturers: Alvogen, Inc, Amneal Pharmaceuticals, Inc., Apotex Corp., Hikma Pharmaceuticals USA, Inc., Indivior Inc., Mylan, Sun Pharmaceutical Industries, Inc., and Zydus Pharmaceuticals (USA) Inc. The monetary portion of the settlements will provide cash to participating states and local governments to remediate and abate the impacts of the opioid crisis. In addition to the monetary settlements, injunctive relief related to the marketing, sale, and distribution practices will be imposed. The State of California elected to participate in one or more of the opioid settlements with these manufacturers and as a result the County is eligible to receive settlement funds. However, to receive these funds, the County is required to opt in by October 8, 2025, and in the future will be required to execute certain legal documents.
CONSEQUENCE OF NEGATIVE ACTION:
If the authorization to opt in and execute legal documents is not granted, the County will be unable to participate in and receive funds pursuant to the G8 Settlement.