Reso 2021-178 Settlement Agmt McKesson Corp Cardinal Health Amerisource Berfen Johnson & Johnson Janssen Pharma

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RESOLUTION THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO.2021-178 RESOLUTION OF THE CITY OF SAN LEANDRO CITY COUNCIL APPROVING AND AUTHORIZING THE CITY OF SAN LEANDRO TO ENTER INTO SETTLEMENT AGREEMENTS WITH MCKESSON CORPORATION, CARDINAL HEALTH, INC. AMERISOURCE BERGEN CORPORATION, JOHNSON & JOHNSON, JANSSEN PHARMACEUTICALS, INC. ORHTO-MCNEIL-JANSSEN PHARMACEUTICALS, INC., AND JANSSEN PHARMACEUTICALS, INC. TO PARTICIPATE AND RECEIVE SETTLEMENT FUNDS DERIVED FROM MULTI - DISTRICT LITIGATION IN COOPERATION WITH THE CALIFORNIA ATTORNEY GENERAL WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death. The State of California and California local governments spend millions of dollars each year to address the direct consequences of this crisis; and WHEREAS, since 2017, state and local governments in California and around the United States have been pursuing litigation against certain manufacturers, distributors, and retailers of opioid pharmaceuticals (the "Opioid Defendants") in an effort to hold the Opioid Defendants financially responsible for the impact of the Opioid Epidemic; and WHEREAS, negotiations to settle claims against several of the Opioid Defendants, specifically McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutical, Inc. (the "Settling Defendants") have been ongoing for several years; and WHEREAS, negotiations with the Settling Defendants have resulted in proposed nationwide settlements of state and local government claims to settle the litigation; and WHEREAS, the proposed terms of those proposed nationwide settlements have been set forth in the Distributors Master Settlement Agreement and the J&J Master Settlement Agreement (collectively "Settlement Agreements"); and WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in California including to the State of California upon occurrence of certain events as defined in the Settlement Agreements ("California Opioid Funds"); and WHEREAS, California local governments have engaged in extensive discussions with the California Attorney General's Office ("AGO") as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds -Distributor Settlement and the Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds -Janssen Settlement (collectively the "Allocation Agreements,") which are agreements between all of the entities identified in the Allocation Agreements; and WHEREAS, the Allocation Agreements propose to allocate the California Opioid Funds 15% to a State Fund; 70% to local governments in an Abatement Accounts Fund; and 15% to litigating local governments in a Subdivision Fund. For the avoidance of doubt, all funds