AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE THE NECESSARY DOCUMENTS TO PARTICIPATE IN THE DIRECT SETTLEMENT AGREEMENT IN RE: NATIONAL PRESCRIPTION OPIATE LITIGATION, AND TO VOTE IN FAVOR OF THE THIRTEENTH AMENDED JOINT CHAPTER 11 PLAN OF REORGANIZATION FOR PURDUE PHARMA L.P. AND ITS AFFILIATED DEBTORS.
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BACKGROUND:
On March 22, 2018, the City Commission adopted Resolution No. 2018-073, directing the City Attorney to engage the firms of Robbins Geller Rudman & Dowd LLP and Lieff Cabraser Heimann & Bernstein, LLP ("Outside Counsel") to file a lawsuit against various pharmaceutical manufacturers, including Purdue Pharma, L.P. ("Purdue"), and to join the nationwide multidistrict litigation "In Re: National Prescription Opiate Litigation," MDL No. 2804. On September 15, 2019, Purdue and its affiliated debtors filed for Chapter 11 Plan of Reorganization Bankruptcy in the United States Bankruptcy Court for the Southern District of New York. On July 17, 2020, the City of Coconut Creek filed its proof of claim in the Bankruptcy Chapter 11 Plan of Reorganization.
On May 13, 2021, the City Commission adopted Resolution No. 2021-084, directing the City Manager, or designee, to execute the Florida Memorandum of Understanding (the "Florida Plan"), a unified plan for the proposed allocation and use of opioid settlement proceeds. In 2021, a proposed settlement with the Sackler family Defendants and a corresponding Purdue bankruptcy reorganization plan was presented to the Bankruptcy Court. The settlement and bankruptcy plan was the subject of additional litigation; and in 2024, the U.S. Supreme Court affirmed the invalidation of the proposed settlement and bankruptcy plan. The parties then went back into negotiations, and the result was a new two-part proposed settlement.
The proposed settlements are being implemented in connection with Purdue's bankruptcy proceedings, and consist of, among other things, a settlement ...
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