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 Six Remnant Defendants (Associated Pharmacies, JM Smith Corporation, Louisiana Wholesale Drug Company, Morris and Dickson Co., North Carolina Mutual Wholesale Drug Company; and United Natural Foods, including its subsidiaries)
Report
BACKGROUND
In February 2026, a new proposed settlement was announced to resolve the nationwide litigation involving national prescription opiate litigation. The lawsuits alleged that these six remaining regional distributors or dispensers (Associated Pharmacies, JM Smith Corporation, Louisiana Wholesale Drug Company, Morris and Dickson Co., North Carolina Mutual Wholesale Drug Company, and United Natural Foods, including their subsidiaries SuperValu and Advantage Logistics) distributed opiates and worsened the nationwide opioid crisis. The proposed settlement calls for a combined settlement of $97,625,000 to resolve claims made by local governments, including those municipalities like Sunnyvale that were not parties to the litigation.
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), 2024 (RTC No. 24-0799), and 2025 (RTC Nos. 25-0886 and 25-0920). Since joining these settlements in 2021, the City has received $541,624.46 in settlement funds and expended $61,604.59 to date. Of those funds, the City has expended $15,177.70 on the purchase of Naloxone utilized by Public Safety Officers, $43,006.89 to the Sunnyvale Elementary School District for providing intervention and prevention resources, and $3,420 for narcotic pick up and dis...
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