CITY OF BRENHAM TO JOIN GLOBAL OPIOID LITIGATION SETTLEMENT
The City of Brenham is taking action to join a global settlement against four companies for their role in the opioid crisis.
On Thursday, the Brenham City Council unanimously passed a resolution supporting the adoption of the Texas Term Sheet, which approves the allocation of any and all opioid settlement funds within the State of Texas.
Rick Berlin, Assistant Attorney General – Consumer Protection Division, said Texas could receive nearly $1.5 billion over 18 years, much of which would be targeted for opioid abatement. The actual amount the state receives depends on the participation of cities, counties and other political subdivisions in the state.
The state has reached final agreements with four companies, including three pharmaceutical distributors: AmerisourceBergen, Cardinal Health and McKesson. There is also an agreement with opioid manufacturer Johnson & Johnson.
Berlin said the city could be eligible for a direct payment of $66,829, while Health and Human Services Region 17, which includes Washington County, could receive $28,410,829. Berlin said the goal is to have the direct payment to cities by March or April of 2022, and noted that the direct payment would not need to be applied for.
According to Berlin, the $1.5 billion would consist of $1.17 billion from distributors over 18 years and over $268 million from Johnson & Johnson frontloaded over three months. Annual payments are split into base payouts and incentive payments based on encouraging political subdivisions to sign on to the settlement rather than perform their own litigation.
There are 406 general purpose subdivisions with a population of over 10,000 that could sign onto the settlement. According to Suzanna Hupp, Special Executive Advisor in the Office of the Attorney General, 202 subdivisions were signed on as of Thursday morning, and the state is waiting on paperwork from another 140 who have agreed to join the settlement. Berlin said it is possible that other defendants may come into the settlement and increase the payout.