City of Alexandria, Virginia
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MEMORANDUM
TO: THE HONORABLE MAYOR GASKINS, VICE-MAYOR BAGLEY, AND MEMBERS OF THE CITY COUNCIL
FROM: CHERAN C. IVERY, CITY ATTORNEY /s/
C. DEAN KIME, ASSISTANT CITY ATTORNEY
DATE: AUGUST 27, 2025
DOCKET TITLE:
TITLE
Consideration of a Resolution of the Alexandria City Council approving of the City’s participation in the proposed settlement of opioid-related claims on behalf of Alvogen, Inc., Amneal Pharmaceuticals, Inc., Apotex Corp., Hikma Pharmaceuticals USA, Inc., Indivior Inc., Mylan Pharmaceuticals Inc., Sun Pharmaceutical Industries, Inc., and Zydus Pharmaceuticals (USA) Inc. (collectively “the Manufacturers”) 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 of the Alexandria City Council approving of the City’s participation in the proposed settlement of opioid-related claims against the Manufacturers 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 the City Council adopt the Resolution attached as Attachment 1 approving the settlement with the Manufacturers 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 the 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 end 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: Under the terms of this settlement, the Manufacturers will be required to pay out $720 million dollars. It will also place limitations on their ability to market, sell, lobby for, and distribute opioids.
Five of these manufacturers will pay their proposed settlement amount in a single lump sum payment, while the other three will make annual payments over ten (10), nine (9), or four (4) years. There are a few different incentive structures that may influence the payment structure depending on the level of participation from the localities. Historically, Virginia localities have qualified for the highest level of incentive structure due to universal adoption of the settlement agreements. Assuming full participation, the share of the settlement allocated for Virginia localities would be approximately $6.273 million, with approximately $191,622 for the City of Alexandria to be paid over the lifetime of these settlements. All of which must be spent on opioid remediation efforts.
FISCAL IMPACT: It is presently estimated the City of Alexandria will receive approximately $191,622.00 over the up-to-ten-year lifetime of these settlements.
ATTACHMENTS:
Attachment 1: Resolution.
STAFF:
Cheran Ivery, City Attorney
C. Dean Kime, Assistant City Attorney