HomeMy WebLinkAboutPR 24521: PURDUE PHARMA/SACKLER BANKRUPTCY SETTLEMENT, EXPENDITURE OF FUNDS 9/16/25
PR 24521 TNR
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO APPLY FOR ADDITIONAL FUNDING AVAILABLE TO
THE CITY OF PORT ARTHUR UNDER THE PURDUE
PHARMA/SACKLER BANKRUPTCY SETTLEMENT;
ACKNOWLEDGING THE RESTRICTED PURPOSES OF
SUCH FUNDS; AND PROVIDING FOR FUTURE COUNCIL
ACTION REGARDING ACCEPTANCE AND
EXPENDITURE OF SAID FUNDS.
WHEREAS, the City of Port Arthur recognizes the significant impact of the opioid
epidemic on its residents, including public health, safety, and financial burdens; and
WHEREAS,the City has previously participated in statewide opioid litigation and related
settlements, the proceeds of which are restricted to opioid abatement, treatment, prevention, and
recovery purposes; and
WHEREAS, pursuant to bankruptcy proceedings, a proposed settlement (the "Purdue
Settlement") has been reached with Purdue Pharma, L.P., and members of the Sackler family,
consisting of the "Purdue Estate Settlement" and the "Purdue Direct Settlement," together
requiring payments in an estimated amount of($286,000,000.00) to the State of Texas and its
political subdivisions over a fifteen(15)year period; and
WHEREAS, a portion of the Purdue Settlement funds is available to Texas municipalities,
including the City of Port Arthur, for opioid remediation and abatement efforts consistent with
state and federal requirements; and
WHEREAS, participation in the settlement requires the timely submission of
documentation and adherence to any related terms and conditions. The application for funding
must be submitted by September 30, 2025, and prompt action is necessary to maintain the City's
eligibility. The participation form is attached hereto as Exhibit"A"; and,
WHEREAS,the City Council desires to authorize the City Manager to act on its behalf to
ensure the City's participation in the settlement and to accept and manage any resulting funds in
accordance with applicable laws and settlement requirements, as adopted in Resolution 21-426.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
Section 1.The City Manager,or the City Manager's designee,is hereby authorized to apply
on behalf of the City of Port Arthur for opioid abatement funding available under the Purdue
Pharma/Sackler Bankruptcy Settlement.
9/16/25
PR 24521 TNR
Section 2.Any funds awarded shall be used solely for purposes consistent with applicable
settlement restrictions, including opioid abatement, remediation, prevention, treatment, and
recovery programs.
Section 3.Acceptance and appropriation of any awarded funds shall be subject to future
action of the City Council.
Section 4. That a copy of the caption of this Resolution shall be spread upon the Minutes
of the City Council.
READ,ADOPTED,AND APPROVED,this day of , 2025 AD, at
a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:Mayor:
Councilmembers:
NOES:
Charlotte M. Mose, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Roxann Pais Cotroneo, City Attorney
APPROVED DMINISTRATION:
Ron B , CPM, City Manager
9/16/25
PR 24521 TNR
EXHIBIT "A"
EXHIBIT K
Subdivision Participation and Release Form
Governmental Entity:city of Port Arthur State: Texas
Authorized Official: Ronald Burton
Address 1: 444 4th Street
Address 2:
City, State,Zip: Port Arthur,Texas,77640
Phone: 4099838192
Email: ron.burton@portarthurtx.gov
The governmental entity identified above ("Governmental Entity"), in order to obtain and
in consideration for the benefits provided to the Governmental Entity pursuant to that certain
Governmental Entity & Shareholder Direct Settlement Agreement accompanying this
participation form (the "Agreement')', and acting through the undersigned authorized official,
hereby elects to participate in the Agreement, grant the releases set forth below, and agrees as
follows.
1. The Governmental Entity is aware of and has reviewed the Agreement, and agrees that by
executing this Participation and Release Form, the Governmental Entity elects to
participate in the Agreement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall promptly after the Effective Date, and prior to the filing of
the Consent Judgment, dismiss with prejudice any Shareholder Released Claims and
Released Claims that it has filed. With respect to any Shareholder Released Claims and
Released Claims pending in In re National Prescription Opiate Litigation,MDL No.2804,
the Governmental Entity authorizes the Plaintiffs' Executive Committee to execute and file
on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice
substantially in the form found at https://nationalopioidsettlement.com.
3. The Governmental Entity agrees to the terms of the Agreement pertaining to Participating
Subdivisions as defined therein.
4. By agreeing to the terms of the Agreement and becoming a Releasor, the Governmental
Entity is entitled to the benefits provided therein, including, if applicable, monetary
payments beginning following the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the Agreement
solely for the purposes provided therein.
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental
Entity's state where the Consent Judgment is filed for purposes limited to that court's role
as and to the extent provided in, and for resolving disputes to the extent provided in, the
' Capitalized terms used in this Exhibit K but not otherwise defined in this Exhibit K have the meanings given to
them in the Agreement or,if not defined in the Agreement,the Master Settlement Agreement.
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Agreement. The Governmental Entity likewise agrees to arbitrate before the National
Arbitration Panel as provided in, and for resolving disputes to the extent otherwise
provided in,the Agreement.
7. The Governmental Entity has the right to enforce the Agreement as provided therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for
all purposes in the Agreement, including without limitation all provisions of Article 10
(Release), and along with all departments, agencies, divisions, boards, commissions,
districts, instrumentalities of any kind and attorneys, and any person in his or her official
capacity whether elected or appointed to serve any of the foregoing and any agency,person,
or other entity claiming by or through any of the foregoing, and any other entity identified
in the definition of Subdivision Releasor,to the maximum extent of its authority,for good
and valuable consideration, the adequacy of which is hereby confirmed, the Shareholder
Released Parties and Released Parties are, as of the Effective Date, hereby released and
forever discharged by the Governmental Entity and its Subdivision Releasors from: any
and all Causes of Action,including,without limitation,any Estate Cause of Action and any
claims that the Governmental Entity or its Subdivision Releasors would have presently or
in the future been legally entitled to assert in its own right (whether individually or
collectively),notwithstanding section 1542 of the California Civil Code or any law of any
jurisdiction that is similar, comparable or equivalent thereto (which shall conclusively be
deemed waived), whether existing or hereinafter arising, in each case, (A) directly or
indirectly based on, arising out of, or in any way relating to or concerning, in whole or in
part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their
Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as
to which any conduct, omission or liability of any Debtor or any Estate is the legal cause
or is otherwise a legally relevant factor(each such release,as it pertains to the Shareholder
Released Parties, the "Shareholder Released Claims", and as it pertains to the Released
Parties other than the Shareholder Released Parties, the "Released Claims"). For the
avoidance of doubt and without limiting the foregoing: the Shareholder Released Claims
and Released Claims include any Cause of Action that has been or may be asserted against
any Shareholder Released Party or Released Party by the Governmental Entity or its
Subdivision Releasors (whether or not such party has brought such action or proceeding)
in any federal, state, or local action or proceeding (whether judicial, arbitral, or
administrative)(A)directly or indirectly based on, arising out of, or in any way relating to
or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after
the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv)
Covered Conduct and(B) as to which any conduct, omission or liability of any Debtor or
any Estate is the legal cause or is otherwise a legally relevant factor.
9. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and
irrevocably covenants not to bring,file,or claim,or to cause,assist or permit to be brought,
filed, or claimed, or to otherwise seek to establish liability for any Shareholder Released
Claims or Released Claims against any Shareholder Released Party or Released Party in
any forum whatsoever, subject in all respects to Section 9.02 of the Master Settlement
Agreement. The releases provided for herein (including the term "Shareholder Released
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Claims" and "Released Claims") are intended by the Governmental Entity and its
Subdivision Releasors to be broad and shall be interpreted so as to give the Shareholder
Released Parties and Released Parties the broadest possible release of any liability relating
in any way to Shareholder Released Claims and Released Claims and extend to the full
extent of the power of the Governmental Entity to release claims. The Agreement shall be
a complete bar to any Shareholder Released Claim and Released Claims.
10. To the maximum extent of the Governmental Entity's power, the Shareholder Released
Parties and the Released Parties are, as of the Effective Date, hereby released and
discharged from any and all Shareholder Released Claims and Released Claims of the
Subdivision Releasors.
11. The Governmental Entity hereby takes on all rights and obligations of a Participating
Subdivision as set forth in the Agreement.
12. In connection with the releases provided for in the Agreement, each Governmental Entity
expressly waives, releases, and forever discharges any and all provisions, rights, and
benefits conferred by any law of any state or territory of the United States or other
jurisdiction, or principle of common law, which is similar, comparable, or equivalent to
§ 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that
the creditor or releasing party does not know or suspect to exist in his or her
favor at the time of executing the release that,if known by him or her,would
have materially affected his or her settlement with the debtor or released
party.
A Releasor may hereafter discover facts other than or different from those which it knows,
believes, or assumes to be true with respect to the Shareholder Released Claims or such
other Claims released pursuant to this release, but each Governmental Entity hereby
expressly waives and fully, finally, and forever settles, releases and discharges, upon the
Effective Date, any and all Shareholder Released Claims or such other Claims released
pursuant to this release that may exist as of such date but which Releasors do not know or
suspect to exist,whether through ignorance,oversight,error,negligence or through no fault
whatsoever, and which, if known, would materially affect the Governmental Entities'
decision to participate in the Agreement.
13.Nothing herein is intended to modify in any way the terms of the Agreement, to which
Governmental Entity hereby agrees. To the extent any portion of this Participation and
Release Form not relating to the release of,or bar against,liability is interpreted differently
from the Agreement in any respect,the Agreement controls.
14.Notwithstanding anything to the contrary herein or in the Agreement, (x) nothing herein
shall(A)release any Excluded Claims or(B)be construed to impair in any way the rights
and obligations of any Person under the Agreement; and (y) the Releases set forth herein
shall be subject to being deemed void to the extent set forth in Section 9.02 of the Master
Settlement Agreement.
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I have all necessary power and authorization to execute this Participation and Release Form
on behalf of the Governmental Entity.
Signature:
Name: Ronald Burton
Title: City Manager
Date: 09/16/25
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EXHIBIT K
Secondary Manufacturers' Combined Subdivision Participation and Release Form
("Combined Participation Form")
Governmental Entity:City of Port Arthur State:Texas
Authorized Official: Ronald Burton
Address 1: 444 4th Street
Address 2:
City, State, Zip: Port Arthur, Texas, 77640
Phone: 4099838192
Email: Ron.Burton@portarthurtx.gov
The governmental entity identified above ("Governmental Entity"), in order to obtain and
in consideration for the benefits provided to the Governmental Entity pursuant to each of the
settlements which are listed in paragraph 1 below(each a"Secondary Manufacturer's Settlement"
and collectively, "the Secondary Manufacturers' Settlements"), and acting through the
undersigned authorized official, hereby elects to participate in each of the Secondary
Manufacturers' Settlements, release all Released Claims against all Released Entities in each of
the Secondary Manufacturers' Settlements, and agrees as follows.
1. The Participating Entity hereby elects to participate in each of the following Secondary
Manufacturers' Settlements as a Participating Entity:
a. Settlement Agreement for Alvogen, Inc. dated April 4,2025.
b. Settlement Agreement for Apotex Corp. dated April 4, 2025.
c. Settlement Agreement for Amneal Pharmaceuticals LLC dated April 4, 2025.
d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025.
e. Settlement Agreement for Indivior Inc. dated April 4, 2025.
f. Settlement Agreement for Viatris Inc. ("Mylan") dated April 4, 2025.
g. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4,2025.
h. Settlement Agreement for Zydus Pharmaceuticals(USA) Inc. dated April 4,2025.
2. The Governmental Entity is aware of and has reviewed each of the Secondary
Manufacturers' Settlements, understands that all capitalized terms not defined in this
Combined Participation Form have the meanings defined in each of the Secondary
Manufacturers' Settlements, and agrees that by executing this Combined Participation
Form, the Governmental Entity elects to participate in each of the Secondary
Manufacturers' Settlements and become a Participating Subdivision as provided in each of
the Secondary Manufacturers' Settlements.
3. The Governmental Entity shall promptly, and in any event no later than 14 days after the
Reference Date and prior to the filing of the Consent Judgment,dismiss with prejudice any
Released Claims that it has filed against any Released Entity in each of the Secondary
Manufacturers' Settlements. With respect to any Released Claims pending in In re
National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity
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authorizes the Plaintiffs' Executive Committee to execute and file on behalf of the
Governmental Entity a Stipulation of Dismissal with Prejudice for each of the
manufacturers listed in paragraph 1 above substantially in the form found at
https://nationalopioidsettlement.com/additional-settlements/.
4. The Governmental Entity agrees to the terms of each of the Secondary Manufacturers'
Settlements pertaining to Participating Subdivisions as defined therein.
5. By agreeing to the terms of each of the Secondary Manufacturers' Settlements and
becoming a Releasor,the Governmental Entity is entitled to the benefits provided therein,
including, if applicable, monetary payments beginning after the Effective Date.
6. The Governmental Entity agrees to use any monies it receives through each of the
Secondary Manufacturers' Settlements solely for the purposes provided therein.
7. The Governmental Entity submits to the jurisdiction of the court and agrees to follow the
process for resolving any disputes related to each Secondary Manufacturer's Settlement as
described in each of the Secondary Manufacturers' Settlements)
8. The Governmental Entity has the right to enforce each of the Secondary Manufacturers'
Settlements as provided therein.
9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for
all purposes in each of the Secondary Manufacturers' Settlements, including without
limitation all provisions related to release of any claims,2 and along with all departments,
agencies, divisions, boards, commissions, districts, instrumentalities of any kind and
attorneys, and any person in his or her official capacity whether elected or appointed to
serve any of the foregoing and any agency, person, or other entity claiming by or through
any of the foregoing, and any other entity identified in the definition of Releasor,provides
for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity
hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim,
or to cause,assist or permit to be brought,filed,or claimed,or to otherwise seek to establish
liability for any Released Claims against any Released Entity in each of the Secondary
Manufacturers' Settlements in any forum whatsoever. The releases provided for in each
of the Secondary Manufacturers' Settlements are intended by the Parties to be broad and
shall be interpreted so as to give the Released Entities in each of the Secondary
Manufacturers' Settlements the broadest possible bar against any liability relating in any
See Settlement Agreement for Alvogen, Inc. Section VII.F.2; Settlement Agreement for Apotex Corp. Section
VII.F.2;Settlement Agreement for Amneal Pharmaceuticals LLC Section VII.F.2; Settlement Agreement for Hikma
Pharmaceuticals USA Inc.Section VII.F.2;Settlement Agreement for Indivior Section VI.F.2;Settlement Agreement
for Mylan Section VI.F.2;Settlement Agreement for Sun Pharmaceutical Industries,Inc.Section VII.F.2;Settlement
Agreement for Zydus Pharmaceuticals(USA)Inc.Section VII.F.2.
2 See Settlement Agreement for Alvogen, Inc. Section XI; Settlement Agreement for Amneal Pharmaceuticals LLC
Section X; Settlement Agreement for Apotex Corp. Section XI; Settlement Agreement for Hikma Pharmaceuticals
USA Inc. Section XI; Settlement Agreement for Indivior Section X; Settlement Agreement for Mylan Section X;
Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section XI; Settlement Agreement for Zydus
Pharmaceuticals(USA)Inc.Section XI.
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way to Released Claims and extend to the full extent of the power of the Governmental
Entity to release claims. Each of the Secondary Manufacturers' Settlements shall be a
complete bar to any Released Claim against that manufacturer's Released Entities.
10. The Governmental Entity hereby takes on all rights and obligations of a Participating
Subdivision as set forth in each of the Secondary Manufacturers' Settlements.
11. In connection with the releases provided for in each of the Secondary Manufacturers'
Settlements, each Governmental Entity expressly waives, releases, and forever discharges
any and all provisions,rights,and benefits conferred by any law of any state or territory of
the United States or other jurisdiction, or principle of common law, which is similar,
comparable, or equivalent to § 1542 of the California Civil Code,which reads:
General Release; extent. A general release does not extend to claims that
the creditor or releasing party does not know or suspect to exist in his or her
favor at the time of executing the release that,if known by him or her would
have materially affected his or her settlement with the debtor or released
party.
A Releasor may hereafter discover facts other than or different from those which it knows,
believes,or assumes to be true with respect to the Released Claims in each of the Secondary
Manufacturers' Settlements, but each Governmental Entity hereby expressly waives and
fully, finally,and forever settles,releases and discharges,upon the Effective Date, any and
all Released Claims that may exist as of such date but which Releasors do not know or
suspect to exist,whether through ignorance,oversight,error,negligence or through no fault
whatsoever, and which, if known, would materially affect the Governmental Entities'
decision to participate in each of the Secondary Manufacturers' Settlements.
12.The Governmental Entity understands and acknowledges that each of the Secondary
Manufacturers' Settlements is an independent agreement with its own terms and
conditions. Nothing herein is intended to modify in any way the terms of any of the
Secondary Manufacturers' Settlements,to which Governmental Entity hereby agrees,aside
from the exceptions in paragraph 13 below. To the extent this Combined Participation
Form is interpreted differently from any of the Secondary Manufacturers' Settlements in
any respect,the individual Secondary Manufacturer's Settlement controls.
13. For the avoidance of doubt, in the event that some but not all of the Secondary
Manufacturers' Settlements proceed past their respective Reference Dates,all releases and
other commitments or obligations shall become void only as to those Secondary
Manufacturers' Settlements that fail to proceed past their Reference Dates.All releases and
other commitments or obligations (including those contained in this Combined
Participation Form) shall remain in full effect as to each Secondary Manufacturer's
Settlement that proceeds past its Reference Date, and this Combined Participation Form
need not be modified, returned, or destroyed as long as any Secondary Manufacturer's
Settlement proceeds past its Reference Date.
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I have all necessary power and authorization to execute this Combined Participation Form
on behalf of the Governmental Entity.
Signature:
Name: Ronald Burton
Title: City Manager
Date: 09/16/25
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