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Title:
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Consideration of a Resolution approving the City's participation in the proposed settlement of opioid-related claims against Purdue Pharma and Sackler Family 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 settlements.
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City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 4, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: CHERAN C. IVERY, CITY ATTORNEY
C. DEAN KIME, ASSISTANT CITY ATTORNEY
DOCKET TITLE:
TITLE
Consideration of a Resolution approving the City's participation in the proposed settlement of opioid-related claims against Purdue Pharma and Sackler Family 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 settlements.
BODY
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ISSUE: Consideration of a Resolution approving the City's participation in the proposed settlement of opioid-related claims against Purdue Pharma and Sackler Family 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 settlements.
RECOMMENDATION: That City Council adopt the Resolution attached as Attachment 1 approving the settlement with Purdue Pharma and Sackler Family and authorizing the City Attorney and/or the City's outside counsel to execute the documents necessary 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). This same type of litigation by state and local actors is occurring across the country. These lawsuits are starting to resolve through either settlements or bankruptcy plans, which means that funds from the litigation will start to flow to the states and localities in the coming months.
DISCUSSION: Perdue Pharma and its affiliates filed for bankruptcy in 2019 over its opioid debts. An initial bankruptcy settlement agreement was reached but was struck down by the U. S. Supreme Court due to its improperly shielding the Sackler family in their individual capacity, to be paid over the next fifteen years, with an initial payment of $1.5 billion on the settlement's effective date (likely early 2026) The new settlement will require the Sackler family to pay $6.5 billion dollars in addition to funds from the Perdue estate. In addition to financial restitution, Perdue Pharma will dissolve, and its businesses will be transferred to a newly created company that will be required to deploy all assets to address the opioid crisis. This settlement will resolve all claims with Perdue Pharma as well as release the Sackler family from future claims by the City.
Approximately $39.7 million from this settlement is allocated to Virginia localities over the lifetime of the settlement. Under the Virginia allocations memorandum of understanding, Alexandria's portion of these funds is expected to be approximately $643,000 over the course of the next fifteen years. These direct settlement funds must be spent on opioid abatement and remediation efforts.
FISCAL IMPACT: It is presently estimated the City of Alexandria will receive approximately $643,000.00 over the fifteen-year lifetime of the settlement.
ATTACHMENTS:
1. Resolution
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