REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Attorney to Execute the Participation Agreement to opt in to the Proposed National Opioid Settlement as a Non-Litigating Entity Involving Opioid Manufacturer Purdue Pharma L.P. and the Sackler Family
Report
BACKGROUND
In January 2025, a new proposed settlement was announced to resolve several lawsuits involving Purdue Pharma and the Sackler Family. The lawsuits alleged Purdue Pharma and the Sackler Family helped fuel the nation's opioid epidemic by inventing, manufacturing, and aggressively marketing opioid products. The proposed settlement calls for up to $7.4 billion to resolve the claims made by states and local governments, including those municipalities that were not parties to the litigation. According to the settlement, the Sackler family and their former company Purdue Pharma L.P. will pay $7.4 billion over 15 years. California is expected to receive $440 million.
Over the last ten years, prescription drug manufacturers, distributors and pharmacies have proposed or finalized opioid settlements totaling more than $50 billion resulting from lawsuits and claims that these companies fueled the opioid crisis. The City Attorney previously requested Council authorization to participate in opioid settlements in 2021 (RTC No. 21-1125) and 2024 (RTC No. 24-0799). Since 2021, the City has received $540,397.26 in settlement funds, and expended $51,585.59 to date. Of those funds, the City has expended $8,578.70 on the purchase of Naloxone utilized by the Department of Public Safety (DPS) and $43,006.89 to the Sunnyvale Elementary School District for providing intervention and prevention resources. The balance of the settlement is held in a project fund to be allocated to programs to combat the opioid crisis in Sunnyvale, including a continued agreement with the Sunnyvale Elementary School District, annual Naloxone replacement for DPS, and Naloxone training at the Sunnyvale Library. It is anticipated that funds re...
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