DATE: September 9, 2025
TO: Board of Supervisors
SUBMITTED BY: Douglas T. Sloan, County Counsel
SUBJECT: Combined Purdue Pharma L.P./Sackler Settlement Agreement in the National Prescription Opiate Litigation
RECOMMENDED ACTIONS:
TITLE
1. Approve and authorize the Chairman to sign the "Exhibit K, Subdivision Participation and Release Form" and the "Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds, Purdue/Sackler Settlement," thereby approving the combined settlement proposal and agreeing to resolve all the County's claims against manufacturer Purdue Pharma L.P. and the Sackler family members who are shareholders in Purdue Pharma, in exchange for settlement payments estimated to total approximately $7.1 million; and
2. Authorize the County Counsel, or their designee, to submit a vote, via e-mail, on behalf of the County approving Purdue Pharma L.P.'s Chapter 11 bankruptcy plan.
REPORT
The recommended actions will allow the Board to execute the County's approval of the combined settlement proposal involving the pharmaceutical manufacturer Purdue Pharma L.P. and the Sackler family members who are shareholders in Purdue Pharma.
ALTERNATIVE ACTION:
Your Board, as an alternative action, may decline to approve the settlement proposal. In that case, the County would be required to litigate its claim, at significant cost, instead of participating in the nationwide settlement.
FISCAL IMPACT:
There are only rough estimates of the amounts that will flow to the County from the combined settlement agreement. The combined total of the Purdue Pharma and the Sackler family shareholders of the Purdue Pharma settlements is approximately $8 billion. The approximate amount California would receive is up to $440 million with a 15-year payment term in 16 separate payouts beginning around June 2026. The distribution of that statewide amount would be allocated as follows: 15% to the State of California, 70% to California A...
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