LAKE COUNTY, Calif. — The Lakeport City Council this week voted to take action on two cases of litigation as part of seeking settlements for the impact of the opioid crisis on the city and its residents.
Following the open session of its regular Tuesday night meeting, the council went into a nearly hourlong closed session just before 6:45 p.m. to discuss the city’s lawsuit against opioid distributor AmerisourceBergen Drug Corp. as well as another potential case of litigation.
When the council emerged shortly after 7:35 p.m., City Attorney David Ruderman said the council had voted 5-0 to approve a settlement with McKesson, AmerisourceBergen, Cardinal Health and Janssen, also known as Johnson & Johnson, regarding the city’s lawsuit against them related to their contribution to the opioid epidemic.
The city reported that the settlement will provide up to $2.263 billion to California and its 431 eligible counties and cities.
On July 21, several states attorneys general, including California’s, entered into a $26 billion settlement with Cardinal, McKesson and AmerisourceBergen — the nation’s three major pharmaceutical distributors — and Johnson & Johnson, which manufactured and marketed opioids.
At that time, the California Attorney General’s Office said eligible cities and counties had until Jan. 2, 2022, to join the settlements.
City Manager Kevin Ingram confirmed to Lake County News that the council’s action was necessary to comply with the upcoming deadline.
“We do not have a good estimate to report yet on what Lakeport might receive,” said Ingram.
To determine amounts, he said there is a complicated formula based on the number of current litigants to approve the settlement and the number of other jurisdictions who are not currently litigants but would like to join as participants.
“Once this is known, likely at the end of January, we should have a better idea as to what the city will be entitled to,” Ingram said.
On Tuesday, Ruderman also announced a second council action from closed session, to initiate litigation against McKinsey and Co. for its role in furthering the opioid epidemic. That vote also was unanimous.
Earlier this year, McKinsey and Co., a global consulting firm, reached agreements with 49 states, along with several territories and the District of Columbia, to pay $600 million in settlements for its part in the opioid crisis.
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