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Authorization for County Attorney to Execute Settlement Participation Agreements for Mediated Settlements With Nine Manufacturers of Generic Opioid Products Regarding Opioid Litigation
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BRIEF OVERVIEW
I. The Litigation
On January 29, 2019, the Board of County Commissioners selected a litigation team consisting of numerous nationally renowned law firms including Podhurst Orseck, P.A.; Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, PA; Baron & Budd, PC; Greene, Ketchum, Farrell, Bailey & Tweet, LLP; McHugh Fuller Law Group, PLLC; Hill, Peterson, Carper, Bee & Dietzler, PLLC; Powell & Majestro, PLLC., and the Law Office of Lucas Magazine (collectively, “Levin”) as outside counsel to represent the County with regard to opioid litigation.
On June 6, 2019, the County Attorney's Office and Levin filed a federal lawsuit for damages on Hernando County’s behalf against several participants in the opioid industry. The County filed its suit in the Middle District of Florida, but it was subsequently transferred to become part of the multi-district litigation (“MDL”) case pending in the Northern District of Ohio.
(An MDL is a federal legal procedure that is designed to consolidate complex cases that involve similar legal issues before one court for all discovery and pretrial proceedings. The goal of an MDL is to expedite proceedings, conserve resources, and foster consistent court rulings across different lawsuits. The Opioid MDL is the largest such proceeding in U.S. history, and it has been described as the most complex civil litigation in U.S. history. Although the case is currently in the Northern District of Ohio, if it does not settle it will be tried in the Middle District of Florida.)
Amongst the defendants that Hernando County sued were nine manufacturers of generic opioid products: Alvogen, Inc., Amneal Pharmaceuticals, Inc., Apotex, Inc., Hikma Pharmaceuticals USA, Inc., Indivior, Inc., Mylan Pharmaceuticals, Inc., Sun Pharmaceutical Industries, Inc., Zydus Pharmaceuticals, Inc., and Sandoz, Inc. (collectively, the “Generic Providers”).
II. The Proposed Settlements
A committee of plaintiffs recently reached two mediated settlements with the Generic Providers: one with the first eight listed Generic Providers and one with Sandoz, Inc.
These settlements will provide payments totaling $844,000,000 in cash and $355,000,000 in life-saving opioid addiction and overdose treatment drugs. The product components also are convertible to a maximum of $87,000,000 in cash for product that is not utilized by the States or Subdivisions. A chart of the proposed settlements is attached hereto.
Thus, the total value of these deals for cash and product is $1,199,000,000, and the maximum cash value of these deals is $931,000,000. Six of the nine deals will be paid out in the first year, with the remaining three (Amneal, Indivior and Mylan) over a period of years. The settlements will be administered by BrownGreer and Rubris in a manner similar to the prior settlements. The settlement payments will be coordinated so Hernando County will receive one combined annual payment for all nine settlements until all payment years are completed.
The exact schedule of payments that Hernando County will receive if it approves the settlements is not yet known.
III. Recommendation
Hernando County’s counsel recommends that it participate in the above-described settlements.
IV. Authorization for County Attorney to E-Sign Participation Agreements
To participate in the settlements, Hernando County must e-sign the applicable participation forms. This agenda item asks the Board of County Commissioners to authorize the County Attorney to e-sign the participation forms.
FINANCIAL IMPACT
Participating in the settlements includes the cost to participate in the applicable process, both actual costs not recovered as part of the process and the opportunity cost associated with any time spent on the settlement by the County Attorney’s office; however, those costs also bring the potential for settlement funds to provide additional resources to Hernando County to offer programs and services to assist those that have been negatively impacted by Opioid Products. The dollar amounts above are substantial and the County Attorney’s office recommends joining the settlement.
LEGAL NOTE
The Board has the authority to approve this Agenda Item pursuant to Fla. Stat. § 125.01.
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RECOMMENDATION
It is recommended by the Hernando County’s counsel that the Board approve this agenda item.