DEPARTMENT: Employee Relations
FILE TYPE: Consent Action
TITLE
title
Authorization To Enter Into Agreement With Navitus, Dakota County’s Pharmaceutical Vendor, That Will Allow Submission Of Claim On Dakota County’s behalf In Class Action Lawsuit Involving Suboxone Drug
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PURPOSE/ACTION REQUESTED
Provide the Dakota County Board of Commissioners with information necessary to analyze whether to authorize Employee Relations to enter into an agreement with Navitus, which agreement would allow Navitus to submit a claim compromising Dakota County’s claim in a class action lawsuit involving the drug Suboxone.
SUMMARY
Suboxone is the brand name for the drug buprenorphine/naloxone. It is used to treat dependence on and addiction to opioid drugs. A plaintiff commenced a class action lawsuit against the drug’s manufacturer, Indivior, alleging that it failed to warn about certain risks associated with the drug. More specifically, the plaintiff complains that the drug can cause serious dental problems such as tooth decay, oral infections, cavities, and tooth loss.
Indivior entered into a settlement with the class plaintiff and has agreed to pay a total of $385 Million to claimants. The estimated recovery for each claim is between 1% and 10% of total claim submitted. The exact payment amount depends on the number and amount of claims submitted.
Dakota County has a claim to some of the settlement proceeds because it paid claims for the drug between January 2013 and August 2023. Dakota County had 532 claims and paid a total of $174,077.38. The County’s pharmacy vendor, Navitus, offered to submit and file the claim on the County’s behalf in return for 25% of recovered amount. This Request seeks approval to enter into that agreement.
RECOMMENDATION
recommendation
Authorize the Employee Relations Director to enter into an agreement with Navitus that will allow to submit a claim on Dakota County’s behalf in return for a portion of any settlement that Dakota County receives as a result.
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EXPLANATION OF FISCAL/FTE IMPACTS
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Suboxone is the brand name for the drug buprenorphine/naloxone used to treat dependence on and addiction to opioid drugs; and
WHEREAS, Indivior entered into a settlement with the class plaintiff and has agreed to pay a total of $385 Million to claimants; and
WHEREAS, the estimated recovery for each claim is between 1 percent and 10 percent of total claim submitted (the exact payment amount depends on the number and amount of claims submitted); and
WHEREAS, Dakota County has a claim to some of the settlement proceeds because it paid claims for the drug between January 2013 and August 2023. Dakota County had 532 claims and paid a total of $174,077.38; and
WHEREAS, the County’s pharmacy vendor, Navitus, offered to submit and file the claim on the County’s behalf in return for 25 percent of recovered amount.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Dakota County Employee Relations Director to enter into an agreement with Navitus, Dakota County’s pharmaceutical vendor, that will allow submission of a claim on Dakota County’s behalf in a class action lawsuit involving the drug Suboxone.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: None.
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Andy Benish
Author: Shannon Welle