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8H Consent 2021 1213
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8H Consent 2021 1213
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12/10/2021 10:31:09 AM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
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12/13/2021
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<br /> <br />2 <br /> <br />AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit <br />seeking damages, abatement, or other remedies related to or caused by the opioid <br />public health crisis in any lawsuit brought by any state or local government on or <br />before October 1, 2020. <br /> <br />3. General Terms <br /> <br />This agreement is subject to the requirements of the Janssen Settlement Agreement, as well as <br />applicable law, and the Janssen Settlement Agreement governs over any inconsistent provision <br />of this CA Janssen Allocation Agreement. Terms used in this CA Janssen Allocation Agreement <br />have the same meaning as in the Janssen Settlement Agreement unless otherwise defined herein. <br /> <br />Pursuant to Section VI(D)(1) of the Janssen Settlement Agreement, (a) all Settlement Fund <br />payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the <br />Janssen Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund <br />payment amounts will be used solely for future Opioid Remediation. <br /> <br />4. State Allocation <br /> <br />The Settlement Fund payments to California,2 pursuant to the Janssen Settlement Agreement, <br />shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and <br />15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from <br />the Settlement Fund shall be combined pursuant to this CA Janssen Allocation Agreement, and <br />15% of that total shall be allocated to the State of California (the “State of California <br />Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts <br />Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). <br /> <br /> A. State of California Allocation <br /> <br />Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by <br />the State for future Opioid Remediation. <br /> <br /> B. CA Abatement Accounts Fund <br /> <br /> i. Allocation of CA Abatement Accounts Funds <br /> <br />a) Seventy percent of the total Settlement Fund payments will be allocated to the CA <br />Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be <br />allocated based on the allocation model developed in connection with the proposed <br />negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as <br />adjusted to reflect only those cities and counties that are eligible, based on population or <br />litigation status, to become a CA Participating Subdivision. The percentage from the CA <br /> <br />2 For purposes of clarity, use of the term “California” refers to the geographic territory of <br />California and the state and its local governments therein. The term “State” or “State of <br />California” refers to the State of California as a governmental unit. <br />316
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