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HomeMy WebLinkAbout2025-09-08 25-266 Order *��a�$qH a CITY COUNCIL ACTION / !,�/' 1�,, Council Meeting Date: 09/08/2025 If��-' �'� Item No: 25-266 _ - _ . -,,�, `�n�= � '��A����ti Responsible Dept: Legal ren,� Requested Action: Order Map/Lot: N/A Title, Order Authorizing the City Manager and City Solicitor to Execute Settlement Documents in the Multi-District Opioid Litigation Regarding the Sackler Family Settlement and Purdue Pharma Bankruptcy Plan Summary This Order would authorize the City Manager and Ciry Solicitor to take any action to effectuate settlement agreements in the multi-district opioid litigation matters. This includes agreements with the State regarding apportionment of funds, to opt in on behalf of the City to participate in the 2025 settlement agreement reached with the Sackler Family, and to authorize the vote on the City's behalf in favor of the revised Purdue Pharma bankruptcy plan. The State of Maine, along with many other states and creditors, has reached a new settlement with the Sackler Family, and municipalities are now eligible to participate in that settlement. The parties have also reached a revised settlement of Purdue Pharma's bankruptcy estate, which includes contributions from the Sacklers and certain other parties. Under this revised settlement plan, the Sackler family defendants will be required to pay $6.5 billion over 15 years, including $1.5 billion in the first year, to be distributed among state and local governments and other creditors across the country. The details of the settlements are available online. The settlement group will use the same allocation formula as was used with the prior national settlement agreements in this litigation. The State of Maine and the local governments will receive the same proportional share of the settlements as they received with respect to the past settlements. Funds received by the City under these settlements will be used to combat the opioid crisis, thereby improving and preserving the health and safety of Bangor's citizens. Committee Action Committee: Meeting Date: Action: Recommend for passage For: Against: Staff Comments &Approvals Staff recommends approval. - �� � � City Manager City Solicitor Finance Director Introduced for: New Business �-art_aa;y�� CITY OF BANGOR ORDER c�*�'; ,°�+ i%�m��;� ��m Date: 09/08/2025 f��. ,n�_:-.... _.=�;M �,v�. .� Item No: 25-266 'AJ°�'�`�� �`4 °Rar�n,��-�� Assigned to Councilor: Hawes Authorizing the City Manager and City Solicitor to Execute Settlement Documents in the Multi-District Opioid Litigation Regarding the Sackler Family Settlement and Purdue Pharma Bankruptcy Plan Whereas, the State of Maine, along with many other states, has signed on in favor of a new settlement agreement reached with the Sackler Family (the "Direct Settlement") in the multi-district opioid litigation; and Whereas, the parties have also reached a settlement on a revised bankruptcy plan for Purdue Pharma (the " Estate Settlement"), which includes contributions from the Sacklers and certain other parties; and Whereas, under this revised settlement plan, the Sackler family defendants will be required to pay $6.5 billion over 15 years, including $1.5 billion in the first year, to be distributed among state and local governments and other creditors across the country; and Whereas, the details of the settlements are outlined here: https://nationalopioidsettlement.com/; and Whereas, funds received by the City under this settlement will be used to combat the opioid crisis, thereby improving and preserving the health and safety of Bangor's citizens; Be it Ordered by the City Council of the City of Bangor, that the City Manager and the City Solicitor are hereby authorized to take any action necessary to (1) effectuate the City's opting in to the Direct Settlement of the claims against the Sackler family, including agreements with the State regarding the apportionment of funds, and to (2) authorize the City's national counsel in this matter, Napoli Shkolnik, to vote on the City's behalf in favor of the revised Purdue Pharma bankruptcy plan (the Estate Settlement). IN CITY COUNCIL SEPTEMBER 8, 2025 CO 25-266 Motion made and seconded for Passage Passed � DEPUTY CITY CLERK