REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Attorney to Execute the Participation Agreement to opt in to the Proposed Kroger Co. National Opioid Settlement as a Non-Litigating Entity Involving an Opioid Grocery Store Pharmacy Settlement
Report
BACKGROUND
On June 14, 2024, a new proposed settlement was announced to resolve several lawsuits involving supermarket chain Kroger (in California, the supermarket operates under the names Ralph's and Food 4 Less). The lawsuits alleged that the supermarket in-store pharmacies helped fuel the nation's opioid epidemic by improperly monitoring prescriptions. The proposed settlement calls for up to $1.37 billion to resolve the claims made by states, local governments, and Native American tribes, including those cities and counties that were not parties to the litigation. According to the settlement, Kroger will pay $1.37 billion over 11 years.
Over the last eight years, prescription drug manufacturers, distributors and pharmacies have proposed or finalized opioid settlements totaling more than $50 billion resulting from lawsuits and claims alleging that the companies fueled the opioid crisis. The City Attorney requested Council authorization to participate in the distributors' settlements in 2021 (RTC No. 21-1125). Since 2021, the City has received $162,552 in settlement funds, and expended $3,299 of that on the purchase of Naloxone. The balance of the settlement is held in a project fund to be allocated to programs to combat the opioid crisis in Sunnyvale. Such programs include an agreement with the Sunnyvale Elementary School District to provide intervention and prevention resources, and Naloxone administration and education training to take place at the Sunnyvale library. DPS will also use funds to purchase Naloxone annually. It is anticipated that funds received from the Kroger settlement would be used similarly.
Based on the terms of the Agreement, the actual amount each entity will receive depends on the numb...
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