City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 9, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: CHERAN C. IVERY, CITY ATTORNEY /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution Approving the City’s Participation in the Proposed Settlement of Opioid-Related Claims Against Six Regional Distributors/Dispenser Defendants and Directing the City Attorney and/or the City’s Outside Counsel to Execute the Documents Necessary to Effectuate the City’s Participation in the Settlement.
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ISSUE: Consideration of a resolution approving of the City’s participation in the proposed settlement of opioid-related claims against the six regional distributors/dispenser defendants: Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural
Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (collectively “the Six Remnant Defendants”) and directing the City Attorney and/or the City’s outside counsel to execute the documents necessary to effectuate the City’s participation in the settlement.
RECOMMENDATION: That the City Council adopt the resolution attached as Attachment 1 approving the settlement with the Six Remnant Defendants and authorizing the City Attorney and/or the City’s outside counsel to execute the necessary documents to effectuate the City’s participation in this settlement.
BACKGROUND: The City of Alexandria, along with at least seventy-eight other Virginia localities, has been engaged in litigation against various defendants involved in the manufacture, sale, and distribution of pharmaceutical opioid products. The lawsuit seeks recovery of public funds previously expended and to be expended in the future combatting opioid addiction and its many outgrowths. Similar lawsuits asserting claims on behalf of the Commonwealth have been filed by the Virginia Office of the Attorney General (OAG), though state-level entities were not involved in this settlement. Similar litigation by state and local actors is occurring across the country. These lawsuits are starting to end through either settlements or bankruptcy plans, which and funds from those cases will start to flow to the states and localities in the coming months.
DISCUSSION: The settlement with the Six Remnant Defendants is the culmination of many months of litigation and negotiation between local governments, including the City of Alexandria through the City’s outside counsel. A $97,625,000.00 nationwide settlement agreement was finalized with the Six Remnant Defendants for their role in the opioid epidemic. A single settlement agreement covers all six entities. This amount shall be paid in a one-time settlement payment, from which it is estimated the City of Alexandria will receive approximately $28,330.82.
Accepting the terms of this settlement is in the best interest of the City of Alexandria as it will provide additional funds to support the City’s opioid remediation efforts.
FISCAL IMPACT: It is presently estimated the City of Alexandria will receive a one-time payment of approximately $28,330.82 from this settlement.
ATTACHMENTS:
Attachment 1: Resolution.
STAFF:
Cheran Ivery, City Attorney
C. Dean Kime, Assistant City Attorney