AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Participate in the National Opioid Settlement with the Six Remnant Defendants
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Ted Voorhees, Town Manager, Manager’s Office
Jim Baker, Assistant Town Attorney, Town Attorney’s Office
STAFF RECOMMENDATION*
Staff recommends that Council adopt the resolution to authorize the Town Manager to execute a participation and release form to allow the Town of Chapel Hill to participate in the National Opioid Settlement with the Six Remnant Defendants.
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ACTION/DECISION POINTS*
The Town must execute the participation and release form by May 4, 2026, to be eligible to participate in the settlement.
LEGISLATIVE CONTEXT*
The settlement requires that each eligible entity take affirmative steps to opt in to the settlement by executing the participation and release form.
BACKGROUND AND CONTEXT*
A new national opioid settlement has been reached with six regional distributors/dispenser defendants (Remnant Defendants Settlement): Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics) (Six Remnant Defendants).
Detailed information about the settlement agreement may be found at: <https://nationalopioidsettlement.com> under the tab Remnant Defendants Settlement.
FINANCIAL IMPACT
If this settlement is approved by the courts, the Six Remnant Defendants will pay a combined $97,625,000 for purposes of abating the opioid epidemic, with a one-time settlement payment to each participating eligible entity. Currently, the Town of Chapel Hill’s estimated allocation of the settlement is 0.0030509535% of the recovery amount.
The settlement funds must be used for the Core Strategies and Approved Uses set forth in Exhibit D of the Remnant Defendant Settlement Agreement. These exhibits are available at <https://nationalopioidsettlement.com> under the Remnant Defendants Settlement tab.
attachments
Resolution
Six Remnant Defendants’ Combined Participation Form
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