DEPARTMENT: Office of the County Manager
FILE TYPE: Regular Action
TITLE
title
Approval Of Purdue Pharma Chapter 11 Bankruptcy Plan And Authorization Of Settlements With Sackler Family And Generic Opioid Manufacturers In Multi-District Litigation - MDL 2804
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PURPOSE/ACTION REQUESTED
Hold a closed executive session.
SUMMARY
The Dakota County Attorney has advised that prior to closing a County Board meeting, pursuant to the Open Meeting Law, Minn. Stat. Ch. 13D, the County Board must resolve by majority vote to close the meeting.
RECOMMENDATION
recommendation
The County Manager has recommended that a closed executive session be held pursuant to attorney-client privilege during the Dakota County Board meeting of August 26, 2025, to discuss the following:
- the legal strategy for casting a ballot in the Purdue Pharma L.P. Bankruptcy, participating in the Sacker Family settlement and participating in the settlements with Generic Opioid Manufacturer Defendants in the federal Multi-District Litigation - MDL 2804.
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EXPLANATION OF FISCAL/FTE IMPACTS
Fiscal impact will be discussed in closed session.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County has filed a lawsuit against opioid drug manufacturers and distributors seeking compensation for the extensive costs to the County caused by the opioid addiction epidemic and the harm inflicted upon Dakota County residents by this crisis; and
WHEREAS, Dakota County’s lawsuit along with more than 2,400 other lawsuits commenced by local governments and Indian Tribes have been consolidated into a Multi District Litigation group managed by the Federal District Court for the Northern District of Ohio Multi-District (MDL 2804); and
WHEREAS, Purdue Pharma, L.P. is a defendant in Dakota County’s lawsuit; and
WHEREAS, Purdue Pharma, L.P. filed bankruptcy (In Re Purdue Pharma, L.P., et al., Case No. 19-23649 (RDD) (Bankr. S.D.N.Y.)) to halt any pending civil litigation against it; and
WHEREAS, a Chapter 11 plan of reorganization has been filed, after years of negotiation and mediation, and a disclosure statement provided to creditors in order for the creditors to be able to make informed decisions on whether to approve or reject the proposed plans of reorganization; and
WHEREAS, the reorganization plans include payments to states and local governments to redress extensive costs caused and harm inflicted by the opioid addiction epidemic as detailed in the respective plans; and
WHEREAS, a ballot accepting or rejecting the Purdue Pharma, L.P. plan must be cast on or before September 30, 2025, 4:00 (ET); and
WHEREAS the plan contemplates certain Sackler Parties, as defined in the bankruptcy and plan, contributing payments up to $7 billion in exchange for release of liability; and
WHEREAS, Dakota County’s national counsel, Motley Rice LLC, has recommended the County cast ballots to approve the plans and execute the releases as further litigation will be uncertain and time consuming while forgoing the certainty provide by the bankruptcy plan and settlement; and
WHEREAS, the bankruptcy plan and associated releases for the certain Sackler parties represent fair and equitable resolutions of the opioid-related claims against Purdue Pharma, L.P. when considering the totality of the circumstances; and
WHEREAS, proposed nationwide settlement agreements have been reached to resolve opioid litigation brought by states, local political subdivisions, and special districts against nine generic opioids manufacturers in the MDL 2804; and
WHEREAS, the defendants involved in the settlement agreements are Alvogen Inc., Amneal Pharmaceuticals, Inc., Apotex Inc., Hikma Pharmaceuticals USA, Inc., Indivior Inc, Mylan Pharmaceuticals Inc., Sandoz Inc., Sun Pharmaceuticals, Inc. and Zydus Pharmaceuticals, Inc. (the “Generic Opioid Manufacturers”); and
WHEREAS, Dakota County’s national counsel, Motley Rice LLC, has recommended the County participate in the proposed Generic Opioid Manufacturers settlements as further litigation will be uncertain and time consuming while forgoing the certainty provide by the settlements; and
WHEREAS, the proposed Generic Opioid Manufacturers settlements represent fair and equitable resolutions of the opioid-related claims against the Generic Opioid Manufacturers when considering the totality of the circumstances.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes County staff to complete all tasks necessary to submit a ballot approving the bankruptcy reorganization plan in In Re Purdue Pharma, L.P., et al., Case No. 19-23649 (RDD) (Bankr. S.D.N.Y.) and execute all other necessary documents, including releases, contemplated by the Plan to maximize the settlement amounts on behalf of Dakota County, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners supports and opts in to the multistate settlements with the Generic Opioid Manufacturers; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners authorizes County staff to execute all necessary documents to ensure County participation in the multistate Generic Opioid Manufacturers settlements, including any settlement agreements and releases, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: None.
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Heidi Welsch
Author: Jeni Reynolds