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Consider approval of participation in the Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding (the “MOU”) and proposed opioid litigation settlements - McKesson, Cardinal Health, AmerisourceBergen, and Janssen Pharmaceuticals, Inc.
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Presented By: Chris Brown, City Attorney
Recommendation and Review
Attorney General Herring participated with other states’ attorneys general in negotiating a settlement agreement totaling up to $26 billion with pharmaceutical distributors McKesson, Cardinal Health, and AmerisourceBergen and manufacturer Janssen Pharmaceuticals and its parent company Johnson & Johnson. The participating attorneys general worked to set what they believe to be an equitable formula for splitting up settlement funds between the states.
Virginia is expected receive approximately $530 million of the settlement funds, although the total amount depends on participation rates among political subdivisions both in Virginia and elsewhere. Under Virginia’s proposed Settlement Fund Allocation Memorandum of Understanding, 15% of settlement funds will go directly to political subdivisions for general use, and 10.5% will go to political subdivisions for Approved Abatement Purposes, such as efforts to treat and prevent opioid addiction and misuse.
On October 26, 2021 this item was tabled pending a Memorandum of Understanding Resolution.