Town of Chapel Hill header
File #: [21-0699]    Version: 1 Name:
Type: Consent Status: Passed
File created: 9/17/2021 In control: Town Council
On agenda: 9/22/2021 Final action: 9/22/2021
Title: Approve a Memorandum of Agreement Between Orange County and the State of North Carolina Regarding the Disbursement of Settlement Funds Related to the National Opioid Litigation.
Attachments: 1. Resolution, 2. Memorandum of Agreement Between the State of North Carolina and Local Governments on Proceeds Relating to the Settlement of Opioid Litigation, 3. A RESOLUTION BY THE TOWN OF CHAPEL HILL APPROVING THE MEMORANDUM OF AGREEMENT (MOA) BETWEEN THE STATE OF NORTH CAROLINA AND LOCAL GOVERNMENTS ON PROCEEDS RELATING TO THE SETTLEMENT OF OPIOID LITIGATION (2021-09-22/R-3)
Related files: [23-0239]


title
Approve a Memorandum of Agreement Between Orange County and the State of North Carolina Regarding the Disbursement of Settlement Funds Related to the National Opioid Litigation.
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Staff:
Department:
Maurice Jones, Town Manager
Town Manager's Office
Ann Anderson, Town Attorney
Town Attorney's Office

Overview: In 2018, the Orange County Board of Commissioners authorized the County's participation in national litigation related to the nationwide opioid epidemic. The litigation has resulted in the potential for a $26 billion settlement with the four largest corporate defendants. Should such a settlement occur, the attorneys representing the local governments could have an attorney payment fund of up to $1.6 billion. Under a settlement of this type, North Carolina could receive up to $850 million in potential settlement funds over approximately 20 years.

For more than a year, the North Carolina Association of County Commissioners, the North Carolina Department of Justice, and a committee consisting of five county commissioners, five county managers, and five county attorneys have worked on the terms of an agreement regarding the disbursement of potential settlement funds among the state and the counties should a settlement of the national litigation occur.

The result of this work is the attached Memorandum of Agreement (MOA) that recognizes the critical role of North Carolina counties in delivering human and social services to county residents. It directs resources to local governments on the front lines of the opioid epidemic while ensuring that these resources are used in an effective way to address the epidemic.

Should the national litigation settle as discussed herein, the settlement funds will be distributed among local governments according to the National Multidistrict Litigation Opioid Allocation Class Model, which is a formula developed by the national litigation attorneys, including McHugh Fuller. The formula allocates funds i...

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