HomeMy WebLinkAboutItem 6g Approve Participation in Multiple National Opiod Litiigation Settlement Agreements Item 6g
Department: Attorney
Cost Center: 1501
For Agenda of: 9/2/2025
Placement: Consent
Estimated Time: N/A
FROM: Christine Dietrick, City Attorney
Prepared By: Sadie Symens, Deputy City Attorney
Natalie Harnett, Policy and Project Manager
SUBJECT: APPROVE PARTICIPATION IN MULTIPLE NATIONAL OPIOID
LITIGATION SETTLEMENT AGREEMENTS
RECOMMENDATION
1. Approve City participation in the nationally negotiated opioid related settlement
agreements with Purdue Pharma L.P. & Sackler Family (“Purdue and Sackler”); and
2. Approve City participation in the nationally negotiated opioid related settlement
agreements with eight opioids manufacturers, Alvogen, Amneal, Apotex, Hikma,
Indivior, Mylan, Sun, and Zydus (the “Manufacturers”); and
3. Approve City participation in all future nationally negotiated opioid related settlement
agreements; and
4. Authorize the City Manager and City Attorney to execute documents as needed to
participate in the above-specified and all future nationally negotiated opioid related
settlement agreements; and
5. Authorize the City Manager and City Attorney to elect direct allocation of the
settlement funds to the City; and
6. Authorize the City Manager to vote on the Purdue bankruptcy plan, in consultation
with the City Attorney (including abstention if the City Manager determines abstention
is in the best interest of the City.)
7. Authorize staff to submit required annual opioid settlement expenditure reporting
forms to the Department of Health Care Services.
POLICY CONTEXT
Over the last several years, nationwide litigation has resulted in a series of landmark
settlements with opioid manufacturers, distributors, and retailers accused of fueling the
opioid crisis through deceptive marketing and inadequate oversight. These settlements
allow states, counties, and cities—including those not directly involved in the litigation -
to opt in and receive dedicated funding to support local opioid abatement efforts.
Participating in these agreements provides the City with a non-General Fund resource to
help address opioid misuse, addiction, and related public health and safety impacts.
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These efforts align with the City’s adopted Major City Goals and broader commitments to
community well-being, fiscal sustainability, and regional collaboration.
DISCUSSION
Background
Since 2021, the City Council has approved participation in five national, class-action
opioid settlements (See Previous Council Action), and the City received approximately
$370,000 in direct allocations from the settlements since 2024. Two new proposed
nationwide settlement agreements (“Settlements”) have been reached to resolve ongoing
prescription opioid litigation brought by numerous states, local political subdivisions, and
special districts.
Purdue Pharma L.P. & Sackler Family Settlement
The first settlement concerns litigation against Purdue Pharma L.P. and the Sackler
Family (“Purdue and Sackler”) and is being implemented through Purdue’s bankruptcy
proceedings. The Settlement1 includes two components:
The Estate Settlement, which settles Purdue’s claims against the Sacklers and
other parties, and
The Direct Settlement, which resolves direct claims by states, local governments,
and other creditors.
Actual payments will depend on rate of subdivision participation. However, it is estimated
that the two Settlements will require the Sacklers to pay up to $6.5 billion over 15 years,
including a $1.5 billion payment on the Effective Date (expected in 2026), in addition to
nearly $900 million available from the Purdue estate.
The Settlement also includes injunctive relief, requiring Purdue’s successor to adopt
safeguards to prevent opioid diversion, and restricting certain Sacklers from engaging in
opioid-related activities.
Cities and counties that opt in will be eligible for funding under the Direct Settlement
(commonly referred to as the “GESA”) and may be eligible to vote on the bankruptcy plan
governing the Estate Settlement. Opting ou t of the Direct Settlement would preclude the
City from receiving any funds and would leave individual litigation as the only alternative—
a costly and resource-intensive path with uncertain outcomes. The deadline to submit the
Participation Form and California State-Subdivision Agreement (Attachment A), without
alterations, is September 30, 2025.
Voting on the bankruptcy plan is separate from opting into the Direct Settlement. On a
previous opioid bankruptcy (Endo), the City abstained from voting on the plan (since staff
determined it was unlikely the City would have any basis for objecting to the plan) and
opted out of the release of claims (since staff was informed this would not waive any claim
1 View the full terms of the proposed Purdue and Sackler Settlement Agreement here:
https://nationalopioidsettlement.com/purdue-sacklers-settlements/
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Item 6g
to proceeds if the plan were approved.) Staff does not yet have information on the Purdue
bankruptcy, nor has the implementation administrator confirmed whether the City is even
eligible to vote on the bankruptcy plan. If the City is deemed eligible to vote on the plan,
staff recommends that the Council authorize the City Manager to do so, including to
abstain from the plan and opt out of the releases if the facts of the Purdue bankruptcy are
sufficiently similar to the Endo bankruptcy. Staff believe this conservat ive approach will
best protect the City’s rights without waiving its claim to any proceeds from the bankruptcy
if the plan is approved.
Additional Manufacturer Settlements (Alvogen, Amneal, Apotex, Hikma, Indivior,
Mylan, Sun, Zydus)
The second set of proposed settlements2 would resolve claims against eight additional
opioid manufacturers—Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus
(collectively, the “Manufacturers”). These Settlements would provide up to $720 million
nationwide for opioid abatement, a portion of which would be available to California and
its participating subdivisions, including the City of San Luis Obispo.
Depending on participation, the Manufacturers will contribute both cash and product -
based remedies over multiple years. For example:
Mylan will pay up to $290 million over nine years;
Amneal will pay up to $74 million and contribute up to $177 million in generic
Narcan;
Other manufacturers will contribute a mix of immediate payments and naloxone or
buprenorphine products in lieu of cash.
These Settlements also include injunctive relief, requiring manufacturers to change
marketing, distribution, and sales practices to prevent future opioid misuse.
The City must opt in to each of the individual manufacturer settlements by October 8,
2025, to be eligible for any share of the settlement funds.3
City Participation and Use of Funds
Since 2021, the City has participated in five national opioid settlements (See Previous
Council Action) and has received approximately $370,000 in direct allocations since
20244, which currently funds two Licensed Psychiatric Technicians contracted through
the County of San Luis Obispo to support the City’s Mobile Crisis Unit and Community
Action Teams. These new settlements, if approved, could p rovide continued or expanded
funding for those positions or other eligible opioid abatement activities.
2 View the full terms of the proposed Manufacturers Settlement Agreements here:
https://nationalopioidsettlement.com/additional-settlements/
3 The Participation and Release forms for the Manufacturers settlements were not yet available to the City
at time of publication of this report.
4 Prior to 2024, the City’s allocation of annual opioid settlement payments was deferred to the County.
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Item 6g
Failure to act before the respective deadlines—September 30, 2025 for Purdue and
October 8, 2025 for the Manufacturer Settlements—would render the City ineligible for
any of the allocated funds. Staff recommends City Council authorize participation in both
settlements and direct staff to complete and return the required participation forms once
issued by the Implementation Administrator.
Participation in litigation, including a settlement of class-action litigation, requires
authorization of the Council. This is the fourth time staff have sought authorization to
participate in class-action opioid settlement agreements. Participation in these
agreements is very low-risk to the City, since it is unlikely the City will have the resources
and/or basis to pursue individual litigation against any particular opioid defendant or group
of defendants, and the benefits are substantial. The settlement funds have pai d the
entirety of the City’s costs of the two Licensed Psychiatric Technicians (LPTs) within the
Mobile Crisis Unit and Community Action Team under contract with the County. Fire and
Police have identified several other potential uses of the opioid remedia tion funds to
combat the opioid crisis in our community. Staff recommends authorization by Council to
opt-in to future class-action settlement agreements if the settlement terms are
substantially similar to those previously approved by the Council (see Pre vious Council
Action below) and if the City Manager and City Attorney agree it is in the best interests of
the City to do so.
Direct recipients of opioid settlement funds are required to submit annual reporting to the
Department of Health Care Service (DHCS). Since the City is a direct recipient of several
existing settlement funds and is seeking authorization to opt-in to additional settlements
as a direct recipient, the City is required to report on its use of settlement funds by
September 30th of each year (including this year) until all funds from the respective
settlements are expended. Staff is therefore seeking authorization to complete this annual
reporting without returning to Council for further approval.
Previous Council or Advisory Body Action
December 7, 2021 – Council approved the City’s participation in the settlement
agreements with pharmaceutical distributes, McKesson, Cardinal Health and
Amerisource Bergan (“Distributors”) and with manufacturer Janssen Pharmaceuticals
and its parent company Johnson & Johnson (“Janssen”).
April 4, 2023 – Council approved the City’s participation in the settlement agreements
with pharmacies CVS, Walgreens, and Walmart ("Pharmacies"), and with pharmaceutical
manufacturers Teva and Allergan (“Manufacturers”).
July 16, 2024 – Council approved the City’s participation in the settlement agreements
with supermarket pharmacy Kroger Co. (“Kroger”). Council also directed the City Manager
and City Attorney to evaluate the aggregate national opioid settlement amounts to be
allocated to the City each year and the administrative burden s of direct allocation and, if
warranted, to change the distribution to direct allocation. The City Manager thereafter
opted in to direct allocation in August 2024.
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Item 6g
Public Engagement
None. Not applicable since this involves a settlement of litigation to which the City was
not a direct party.
CONCURRENCE
The Police and Fire Chief, Community Development and City Administration Departments
concur in the recommendation.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a "Project" under CEQA
Guidelines Section 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2026-2041
Funding Identified: N/A. Settlement agreement would provide funds to the City, not
require funds to be paid out.
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
The amount of funds that would be received by the City under the settlement agreements
cannot be estimated at this time. The final pay-out amounts will be determined by the
percentage of local jurisdictions that elect to participate in the agreements. Any revenue
received will be deposited into the City’s Opioid Settlement Fund (Fund 217) to help
support the annual contracts with the County for two Licensed Psychiatric Technicians
serving the MCU and CAT programs. Beginning in FY 2027 -28, the annual cost of these
contracts will exceed the ongoing opioid settlement revenue currently forecasted; the
additional revenue from the new Settlements would help offset the shortfall.
ALTERNATIVES
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Item 6g
Do not approve the City’s participation in the settlement agreements. It is unlikely
the City will have the capacity to pursue individual litigation against these opioid
defendants. Failure to participate in the nationally-negotiated settlement agreements will
deprive the City of funds it is otherwise entitled to as a class member.
Approve the City’s participation in the settlement agreements with Purdue and
Sackler, and with the Manufacturers, but require staff to seek authorization for
participation in future settlement agreements. Staff anticipates being well-suited, in
close consultation with the City Attorney, to evaluate future settlement agreements and
determine whether class participation is in the best interest of the City, but Council may
direct staff to return for authorization to participate in future agreements with new
defendants.
ATTACHMENTS
A – Participation and Release Form (Purdue and Sackler)
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EXHIBIT K
Subdivision Participation and Release Form
Governmental Entity: San Luis Obispo city State: CA
Authorized Signatory: /officialname_purdue/
Address 1: /address1_purdue/
Address 2: /address2_purdue/
City, State, Zip: /cit_pd/ /state_pd/ /zi_pd/
Phone: /phone_purdue/
Email: /email_purdue/
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”)1, 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
1 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.
K-1
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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
K-2
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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.
K-3
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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:/signer_1_purdue/
Name:/name_1_purdue/
Title:/title_1_purdue/
Date:/date_1_purdue/
K-4
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Proposed California State-Subdivision Agreement
Regarding Distribution and Use of Settlement Funds
Purdue/Sackler Settlement
1.Introduction
The State of California1 and certain of its cities and counties have reached this proposed
agreement (the “California Purdue/Sackler State-Subdivision Agreement” or the “Agreement”)
to govern the payments made to California in In re: Purdue Pharma L.P., et al, Case No. 19-
23649, pending in the United States Bankruptcy Court, Southern District of New York (the
“Purdue Bankruptcy Matter”) and pursuant to the related settlement with the Sacklers.
This Agreement is proposed to govern the allocation, distribution, and use of payments,
including the Statewide Payment Amounts, consisting of Base Payments and Incentive
Payments, and Estate Distributions, paid to California pursuant to the Governmental Entity &
Shareholder Direct Settlement Agreement (“GESA”), the Master Settlement Agreement
(“MSA”), the Thirteenth Amended Joint Chapter 11 Plan of Reorganization of Purdue Pharma
L.P. and its Affiliated Debtors (the “Plan”), and the Governmental Remediation Trust Agreement
(“GRTA”), and any revisions thereto (collectively, the “Governing Documents”), filed in the
Purdue Bankruptcy Matter.
For the avoidance of doubt, this Agreement does not apply to payments of attorneys’ fees and
costs made to California, including any payments to California from the Local Government
Costs and Expenses Fund and the State Expenses Fund and payments pursuant to Sections
9.01, 9.02, and 9.03 and Exhibit R of the GESA and Sections 5.9(a) and 5.9(b) of the Plan,
unless otherwise noted.
Pursuant to Exhibit O, paragraph 4, of the GESA, acceptance of this California State-Subdivision
Agreement is a requirement to be an Initial Participating Subdivision.
2.Definitions
a)CA Participating Subdivision means a General Purpose Government that is a
Participating Subdivision and also (a) a Plaintiff Subdivision; (b) a Primary
Subdivision; and/or (c) a Non-Litigating Threshold Subdivision. For the avoidance of
doubt, eligible CA Participating Subdivisions are those California Subdivisions listed
in Exhibits C (excluding Litigating Special Districts), I, and/or W to the GESA.
b)CA Litigating Special District means a Litigating Special District located in
California. For the avoidance of doubt, CA Litigating Special District does not
include School Districts and certain Health and Hospital Special Districts that fall
under a separate creditor group in the Purdue Bankruptcy Plan.
1 For purposes of clarity, use of the term “California” refers to the geographic territory of
California and the state and its local governments therein. The term “State” or “State of
California” refers to the State of California as a governmental unit.
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c)Plaintiff Subdivision means a Subdivision located in California, other than a CA
Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or
through an official of the Subdivision on behalf of the People of the State of
California, against one or more Opioid Defendants prior to October 1, 2020.
d)Opioid Defendant means any defendant (including but not limited to Alvogen, Inc.
Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a
West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. a/k/a Mylan N.V.; Sun
Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., Teva
Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS
Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson &
Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc.,
Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.
Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna
Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer
D.A. Sackler) named in a lawsuit seeking damages, abatement, or other remedies
related to or caused by the opioid public health crisis in any lawsuit brought by any
state or local government on or before October 1, 2020.
3.General Terms
This Agreement is subject to the requirements of the Governing Documents, as well as
applicable law, and the Governing Documents govern over any inconsistent provision of this
California Purdue/Sackler State-Subdivision Agreement. Terms not otherwise defined herein
shall have the same meaning as in the Governing Documents.
All payments made to the State of California and CA Participating Subdivisions subject to this
Agreement will be used for Opioid Remediation, except as allowed by Section 5.02(b) of the
GESA and Section 4.01(f)(ii) of the MSA.
This Agreement does not apply to funds received by California for attorneys’ fees and cost,
including payments from the Local Government Costs and Expenses Fund or the State Expenses
Fund, unless otherwise noted.
4.State Allocation
Funds allocated to California shall be combined pursuant to this Agreement, and 15% of that
total shall be allocated to the State of California (the “State of California Allocation”), 70% to
the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the
California Subdivision Fund (“CA Subdivision Fund”).
A.State of California Allocation
Fifteen percent of the payments to California subject to this Agreement will be allocated to the
State and used by the State for future Opioid Remediation.
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B.CA Abatement Accounts Fund
i.Allocation of CA Abatement Accounts Funds
a)Seventy percent of the payments to California subject to this Agreement will be allocated
to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund
will be allocated based on the allocation model developed in connection with the
proposed negotiating class in the National Prescription Opiate Litigation (MDL No.
2804), as adjusted to reflect only those cities and counties that are eligible, based on
population or litigation status, to become a CA Participating Subdivision. The percentage
from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is
set forth in Appendix 1 in the column entitled abatement percentage (the “Local
Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California
towns, cities, and counties with a population less than 10,000 (except those that are
Plaintiff Subdivisions) are not eligible to receive an allocation of CA Abatement
Accounts Funds.
b)A CA Participating Subdivision that is a county, or a city and county, will be allocated its
Local Allocation share as of the date on which it becomes a Participating Subdivision,
and will receive payments as provided in the Governing Documents and this Agreement.
c)A CA Participating Subdivision that is a city will be allocated its Local Allocation share
as of the date on which it becomes a Participating Subdivision. The Local Allocation
share for a city that is a CA Participating Subdivision will be paid to the county in which
the city is located, rather than to the city, so long as the county is a CA Participating
Subdivision; provided, however, that if a city currently receives direct payment of its
share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a
AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the
“Distributors Settlement”), that city’s Local Allocation amount will be paid directly to
the city. A Local Allocation share allocated to a city but paid to a county is not required
to be spent exclusively for abatement activities in that city, but will become part of the
county’s share of the CA Abatement Accounts Funds, which will be used in accordance
with Section 4.B.ii (Use of CA Abatement Accounts Funds).
d)A city within a county that is a CA Participating Subdivision may opt in or out of direct
payment at any time, and it may also elect direct payment of only a portion of its share,
with the remainder going to the county, by providing notice to the Settlement
Administrator at least 60 days prior to a Payment Date.
e)The State will receive the Local Allocation share of any payment that is attributable to a
county or city that is eligible to become a CA Participating Subdivision, but has not, for a
particular payment, become a Participating Subdivision.
f)Funds received by a CA Participating Subdivision, and not expended or encumbered
within five years of receipt and in accordance with the Governing Documents and this
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Agreement shall be transferred to the State; provided however, that CA Participating
Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds
designated to support capital outlay projects before they must be transferred to the State.
ii.Use of CA Abatement Accounts Funds
a)The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or
more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to
the GESA.
b)In addition to this requirement, no less than 50% of the funds received by a CA
Participating Subdivision from the CA Abatement Accounts Fund in each calendar year
will be used for one or more of the following High Impact Abatement Activities:
(1)the provision of matching funds or operating costs for substance use disorder facilities
within the Behavioral Health Continuum Infrastructure Program;
(2)creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure;
(3)addressing the needs of communities of color and vulnerable populations (including
sheltered and unsheltered homeless populations) that are disproportionately impacted
by SUD;
(4)diversion of people with SUD from the justice system into treatment, including by
providing training and resources to first and early responders (sworn and non-sworn)
and implementing best practices for outreach, diversion and deflection, employability,
restorative justice, and harm reduction;
(5)interventions to prevent drug addiction in vulnerable youth, including but not limited
to, youth in foster care, juvenile justice-impacted youth, youth experiencing
adversities related to socioeconomic status, and unhoused youth; and/or
(6)the purchase of naloxone for distribution and efforts to expand access to naloxone for
opioid overdose reversals.
c)The California Department of Health Care Services (“DHCS”) may add to this list (but
not delete from it) by designating additional High Impact Abatement Activities. DHCS
will make reasonable efforts to consult with stakeholders, including the CA Participating
Subdivisions, before adding additional High Impact Abatement Activities to this list.
d)For the avoidance of doubt, and subject to the requirements of the Governing Documents
and applicable law, CA Participating Subdivisions may form agreements or ventures, or
otherwise work in collaboration with, federal, state, local, tribal or private sector entities
in pursuing Opioid Remediation activities funded from the CA Abatement Accounts
Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid
Remediation consistent with the Governing Documents and this Agreement, a county and
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5
any cities or towns within the county may agree to reallocate their respective shares of
the CA Abatement Accounts Funds among themselves, provided that any direct
distribution may only be to a CA Participating Subdivision and any CA Participating
Subdivision must agree to their share being reallocated.
iii.CA Abatement Accounts Fund Oversight
a)Pursuant to Section 5 below, CA Participating Subdivisions receiving funds pursuant to
the Purdue Bankruptcy Plan and related Sackler settlement must prepare and file reports
annually regarding the use of those funds. DHCS may regularly review the reports
prepared by CA Participating Subdivisions about the use of CA Abatement Accounts
Funds for compliance with the Governing Documents and this Agreement.
b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement
Accounts Funds is inconsistent with the Governing Documents or this Agreement,
whether through review of reports or information from any other sources, DHCS shall
send a request to meet and confer with the CA Participating Subdivision. The parties
shall meet and confer in an effort to resolve the concern.
c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the
Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to
meet and confer, unless the parties mutually agree in writing to extend the meet and
confer time frame.
d)If the concern still cannot be resolved, the State may bring a motion or action against the
Subdivision in the court where the State has filed its Consent Judgment to resolve the
concern or otherwise enforce the requirements of the Governing Documents or this
Agreement. However, in no case shall any audit be conducted, or motion be brought, as
to a specific expenditure of funds, more than five years after the date on which the
expenditure of the funds was reported to DHCS, in accordance with this Agreement.
e)Notwithstanding the foregoing, this Agreement does not limit the statutory or
constitutional authority of any state or local agency or official to conduct audits,
investigations, or other oversight activities, or to pursue administrative, civil, or criminal
enforcement actions.
C.CA Subdivision Fund
i.Fifteen percent of the payments to California subject to this Agreement will be allocated
to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated
among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds
will be used, subject to any limits imposed by the Governing Documents and this
Agreement, to fund future Opioid Remediation and reimburse past opioid-related
expenses, which may include fees and expenses related to litigation.
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However, in no event shall more than one-third (5% out of the 15%) be used for
litigation-related fees and expenses.
D.Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio,
Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the
National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee
agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its
contingency fees and costs from the Local Government Costs and Expenses Fund pursuant to the
Governing Documents, and if applicable, the Attorney Fee Fund or Cost Funds under the
settlement agreements with other Opioid Defendants.
A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its
share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel
(“State Back-Stop Agreement”), pursuant to Exhibit R of the GESA and the MDL Fees Order, so
long as: (1) such payments, together with any payments to contingency-fee counsel from the
Local Government Costs and Expenses Fund related to such Plaintiff Subdivision, do not exceed
15% of a Plaintiff Subdivision’s total gross recovery under this Agreement; and (2) Plaintiff
Subdivision certifies that any payments made under a State Back-Stop Agreement will be made
in accordance with the 95% Opioid Abatement use requirements under Section 5.02(a) of the
GESA and Section 4.01(f)(i) of the MSA. Before seeking fees or litigation costs and expenses
from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first
seek contingency fees and costs from the Local Government Costs and Expenses Fund funded
pursuant to the Governing Documents. Further, private counsel may only seek reimbursement for
litigation fees and costs that have not previously been reimbursed through prior settlements or
judgments.
To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of
Appendix 2 may be entered into by a Plaintiff Subdivision, private counsel, and the California
Office of the Attorney General. The California Office of the Attorney General shall, upon the
request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and
its private counsel if it is in the form of Appendix 2. The California Office of the Attorney
General will also consider requests from Plaintiff Subdivisions to execute and enter into
agreements presented in other forms.
For the avoidance of doubt, this Agreement does not require a Plaintiff Subdivision to request or
enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any
duty or obligation on the State of California or any of its agencies or officers, including without
limitation the Attorney General.
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5.State and Subdivision Reporting
a)DHCS will prepare an annual written report regarding the State’s use of funds from the
settlement until those funds are fully expended and for one year thereafter. These reports
will be made publicly available on the DHCS web site.
b)Each CA Participating Subdivision that receives payments of funds from the Purdue
Bankruptcy Plan and related Sackler settlement will prepare written reports at least
annually regarding the use of those funds, until those funds are fully expended and for
one year thereafter. These reports will also include a certification that all funds that the
CA Participating Subdivision has received through the Purdue Bankruptcy Plan and
related Sackler settlement have been used in compliance with the Governing Documents
and this Agreement. The report will be in a form reasonably determined by DHCS. Prior
to specifying the form of the report DHCS will confer with representatives of the Plaintiff
Subdivisions.
c)The State and all CA Participating Subdivisions receiving CA Abatement Accounts
Funds will track all deposits and expenditures. Each such subdivision is responsible
solely for the CA Abatement Accounts Funds it receives. A county is not responsible for
oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city
within that county that receives direct payment. Unless otherwise exempt, Subdivisions’
expenditures and uses of CA Abatement Accounts Funds and other payments will be
subject to the normal budgetary and expenditure process of the Subdivision.
d)Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and
expenditures, as required by the Governing Documents and this Agreement. Among other
things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes
that do not qualify as Opioid Remediation must identify and include in their annual
report, the amount and how such funds were used, including if used to pay attorneys’
fees, investigation costs, or litigation costs. Pursuant to Section 5.02(b) of the GESA and
Section 4.01(f)(ii) of the MSA, such information must also be reported to the Settlement
Administrator and Sackler Parties’ Representative.
e)In each year in which DHCS prepares an annual report DHCS will also host a meeting to
discuss the annual report and the Opioid Remediation activities being carried out by the
State and Participating Subdivisions.
6.Miscellaneous
a)The State or any CA Participating Subdivision may bring a motion or action in the court
where the State has filed its Consent Judgment to enforce the requirements of this
California Purdue/Sackler State-Subdivision Agreement. Before filing such a motion or
action the State will meet and confer with any CA Participating Subdivision that is the
subject of the anticipated motion or action, and vice versa.
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b)Except as provided in the Governing Documents, this California Purdue/Sackler State-
Subdivision Agreement is not enforceable by any party other than the State and the CA
Participating Subdivisions. It does not confer any rights or remedies upon, and shall not
be enforceable by, any third party.
c)Except as provided in this Agreement, if any provision of this Agreement or the
application thereof to any person, entity, or circumstance shall, to any extent, be invalid
or unenforceable, the remainder of this Agreement, or the application of such provision to
persons, entities, or circumstances other than those as to which it is invalid or
unenforceable, will not be affected thereby, and each other provision of this Agreement
will be valid and enforceable to the fullest extent permitted by law.
d)Except as provided in the Governing Documents, this Agreement shall be governed by
and interpreted in accordance with the laws of California.
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The undersigned, San Luis Obispo city, CA, ACKNOWLEDGES acceptance of this Proposed
California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds -
Purdue/Sackler Settlement is a requirement to be an Initial Participating Subdivision and
ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and
Use of Settlement Funds - Purdue/Sackler Settlement.
I swear under penalty of perjury that I have all necessary power and authorization to execute this
agreement on behalf of the Governmental Entity.
Signature:/signer_1_purdue/
Name:/name_1_purdue/
Title:/title_1_purdue/
Date:/date_1_purdue/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights,
releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision
Percentage column may change pursuant to Section 4.C. of the Proposed California State-Subdivision Agreement Regarding
Distribution and Use of Settlement Funds—Purdue/Sackler Settlement, whereas the percentages shown in the Abatement Percentage
column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject
to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will
receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to
become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a
Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff
Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial
Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-
hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein
entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California
Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the
annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage
and the Plaintiff Subdivision Percentage.
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APPENDIX 1
1 of 15
100.000%100.000%100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332%2.853%2.4237952%
City Alameda Alameda 0.069%0.0570162%
City Albany Alameda 0.013%0.0107768%
City Berkeley Alameda 0.152%0.1249656%
City Dublin Alameda 0.033%0.040%0.0338810%
City Emeryville Alameda 0.023%0.0185765%
City Fremont Alameda 0.108%0.0888576%
City Hayward Alameda 0.117%0.0966218%
City Livermore Alameda 0.054%0.0446740%
City Newark Alameda 0.026%0.0217626%
City Oakland Alameda 0.486%0.595%0.5055601%
City Piedmont Alameda 0.014%0.0114064%
City Pleasanton Alameda 0.067%0.0554547%
City San Leandro Alameda 0.039%0.0321267%
City Union City Alameda 0.043%0.0352484%
County Amador County Amador 0.226%0.277%0.2349885%
County Butte County Butte 1.615%1.975%1.6783178%
City Chico Butte 0.216%0.264%0.2246499%
City Oroville Butte 0.079%0.0646595%
County Calaveras County Calaveras 0.226%0.277%0.2351644%
County Colusa County Colusa 0.059%0.0489221 %
County Contra Costa County Contra Costa 2.102%2.571%2.1844585%
City Antioch Contra Costa 0.037%0.0301879%
City Brentwood Contra Costa 0.026%0.0215339%
City Clayton Contra Costa 0.002%0.0018060%
City Concord Contra Costa 0.055%0.0456676%
City Danville Contra Costa 0.010%0.0082255%
City El Cerrito Contra Costa 0.023%0.0189024%
City Hercules Contra Costa 0.010%0.0078273%
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APPENDIX 1
2 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006%0.0046030%
City Martinez Contra Costa 0.012%0.0098593%
City Moraga Contra Costa 0.004%0.0031007%
City Oakley Contra Costa 0.010%0.0079416%
City Orinda Contra Costa 0.005%0.0038157%
City Pinole Contra Costa 0.013%0.0110909%
City Pittsburg Contra Costa 0.053%0.0436369%
City Pleasant Hill Contra Costa 0.013%0.0106309%
City Richmond Contra Costa 0.146%0.1201444%
City San Pablo Contra Costa 0.018%0.0148843%
City San Ramon Contra Costa 0.021%0.0176459%
City Walnut Creek Contra Costa 0.026%0.0212132%
County Del Norte County Del Norte 0.114%0.140%0.1189608%
County El Dorado County El Dorado 0.768%0.939%0.7980034%
City Placerville El Dorado 0.015%0.0127642%
City South Lake Tahoe El Dorado 0.081%0.0665456%
County Fresno County Fresno 1.895%2.318%1.9693410%
City Clovis Fresno 0.065%0.0536211 %
City Coalinga Fresno 0.012%0.0098554%
City Fresno Fresno 0.397%0.3270605%
City Kerman Fresno 0.005%0.0042534%
City Kingsburg Fresno 0.008%0.0066167%
City Mendota Fresno 0.002%0.0019387%
City Orange Cove Fresno 0.004%0.0035607%
City Parlier Fresno 0.008%0.0069755%
City Reedley Fresno 0.012%0.0098804%
City Sanger Fresno 0.018%0.0146135%
City Selma Fresno 0.015%0.0127537%
County Glenn County Glenn 0.107%0.131%0.1116978%
County Humboldt County Humboldt 1.030%1.260%1.0703185%
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APPENDIX 1
3 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054%0.0447660%
City Eureka Humboldt 0.117%0.143%0.1216284%
City Fortuna Humboldt 0.032%0.0266837%
County Imperial County Imperial 0.258%0.315%0.2679006%
City Brawley Imperial 0.011%0.0087986%
City Calexico Imperial 0.019%0.0152799%
City El Centro Imperial 0.158%0.1302522%
City Imperial Imperial 0.006%0.0048791%
County Inyo County Inyo 0.073%0.089%0.0754413%
County Kern County Kem 2.517%3.079%2.6159145%
City Arvin Kem 0.006%0.0046425%
City Bakersfield Kem 0.212%0.1747198%
City California City Kem 0.009%0.0070820%
City Delano Kem 0.030%0.0249316%
City McFarland Kem 0.003%0.0025644%
City Ridgecrest Kem 0.015%0.0120938%
City Shafter Kem 0.013%0.0103417%
City Tehachapi Kem 0.009%0.0073580%
City Wasco Kem 0.008%0.0069861%
County Kings County Kings 0.293%0.2413469%
City Avenal Kings 0.007%0.0056335%
City Corcoran Kings 0.013%0.0107032%
City Hanford Kings 0.027%0.0226038%
City Lemoore Kings 0.016%0.0131900%
County Lake County Lake 0.795%0.6545389%
City Clearlake Lake 0.041%0.050%0.0426253%
City Lakeport Lake 0.021%0.026%0.0222964%
County Lassen County Lassen 0.319%0.391%0.3320610%
City Susanville Lassen 0.027%0.0219295%
County Los Angeles County Los Angeles 13.896%16.999%14.4437559%
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4 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005%0.0040024%
City Alhambra Los Angeles 0.042%0.0343309%
City Arcadia Los Angeles 0.033%0.0267718%
City Artesia Los Angeles 0.001%0.0005100%
City Azusa Los Angeles 0.026%0.0210857%
City Baldwin Park Los Angeles 0.027%0.0218520%
City Bell Los Angeles 0.008%0.0068783%
City Bellflower Los Angeles 0.002%0.0014485%
City Bell Gardens Los Angeles 0.014%0.0114301%
City Beverly Hills Los Angeles 0.065%0.0534897%
City Burbank Los Angeles 0.100%0.0823132%
City Calabasas Los Angeles 0.006%0.0048948%
City Carson Los Angeles 0.019%0.0159805%
City Cerritos Los Angeles 0.005%0.0039682%
City Claremont Los Angeles 0.010%0.0082584%
City Commerce Los Angeles 0.000%0.0002971%
City Compton Los Angeles 0.044%0.0361882%
City Covina Los Angeles 0.028%0.0229127%
City Cudahy Los Angeles 0.001%0.0006020%
City Culver City Los Angeles 0.055%0.0449894%
City Diamond Bar Los Angeles 0.001%0.0006993%
City Downey Los Angeles 0.052%0.0429994%
City Duarte Los Angeles 0.003%0.0027261%
City El Monte Los Angeles 0.031%0.038%0.0318985%
City El Segundo Los Angeles 0.033%0.0268020%
City Gardena Los Angeles 0.034%0.0278088%
City Glendale Los Angeles 0.166%0.1366586%
City Glendora Los Angeles 0.016%0.0134411 %
City Hawaiian Gardens Los Angeles 0.005%0.0040549%
City Hawthorne Los Angeles 0.050%0.0407833%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018%0.0145307%
City Huntington Park Los Angeles 0.023%0.0190667%
City Inglewood Los Angeles 0.059%0.0489195%
City La Cafiada Flintridge Los Angeles 0.003%0.0025565%
City Lakewood Los Angeles 0.005%0.0039971%
City La Mirada Los Angeles 0.010%0.0081572%
City Lancaster Los Angeles 0.045%0.0369689%
City La Puente Los Angeles 0.002%0.0012999%
City La Verne Los Angeles 0.024%0.0194190%
City Lawndale Los Angeles 0.002%0.0017731%
City Lomita Los Angeles 0.004%0.0031940%
City Long Beach Los Angeles 0.439%0.3614151%
City Los Angeles Los Angeles 2.715%3.321%2.8218811%
City Lynwood Los Angeles 0.016%0.0134345%
City Malibu Los Angeles 0.002%0.0019269%
City Manhattan Beach Los Angeles 0.032%0.0260686%
City Maywood Los Angeles 0.004%0.0035528%
City Monrovia Los Angeles 0.031%0.0254455%
City Montebello Los Angeles 0.030%0.0250670%
City Monterey Park Los Angeles 0.031%0.0256677%
City Norwalk Los Angeles 0.031%0.0258228%
City Palmdale Los Angeles 0.046%0.0375827%
City Palos Verdes Estates Los Angeles 0.006%0.0053102%
City Paramount Los Angeles 0.011%0.0091483%
City Pasadena Los Angeles 0.146%0.1200524%
City Pico Rivera Los Angeles 0.022%0.0183333%
City Pomona Los Angeles 0.111%0.0911933%
City Rancho Palos Verdes Los Angeles 0.002%0.0012645%
City Redondo Beach Los Angeles 0.062%0.0506992%
City Rosemead Los Angeles 0.003%0.0028260%
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6 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003%0.0022016%
City San Fernando Los Angeles 0.013%0.0104837%
City San Gabriel Los Angeles 0.018%0.0147726%
City San Marino Los Angeles 0.009%0.0073791%
City Santa Clarita Los Angeles 0.022%0.0178167%
City Santa Fe Springs Los Angeles 0.031%0.0257531%
City Santa Monica Los Angeles 0.158%0.1298513%
City Sierra Madre Los Angeles 0.006%0.0048646%
City Signal Hill Los Angeles 0.010%0.0084884%
City South El Monte Los Angeles 0.005%0.0039603%
City South Gate Los Angeles 0.020%0.0166272%
City South Pasadena Los Angeles 0.012%0.0095334%
City Temple City Los Angeles 0.005%0.0039498%
City Torrance Los Angeles 0.112%0.0919820%
City Walnut Los Angeles 0.006%0.0047305%
City West Covina Los Angeles 0.049%0.0404521%
City West Hollywood Los Angeles 0.013%0.0108517%
City Whittier Los Angeles 0.032%0.0260581%
County Madera County Madera 0.349%0.427%0.3630669%
City Chowchilla Madera 0.012%0.0097332%
City Madera Madera 0.039%0.0318441%
County Marin County Marin 0.564%0.690%0.5861325%
City Larkspur Marin 0.015%0.0124697%
City Mill Valley Marin 0.020%0.0168401%
City Novato Marin 0.028%0.0229824%
City San Anselmo Marin 0.009%0.0078062%
City San Rafael Marin 0.089%0.0729823%
County Mariposa County Mariposa 0.084%0.103%0.0876131%
County Mendocino County Mendocino 0.439%0.536%0.4558394%
City Ukiah Mendocino 0.039%0.0317153%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551%0.674%0.5724262%
City Atwater Merced 0.024%0.0195846%
City Livingston Merced 0.006%0.0045873%
City Los Banos Merced 0.020%0.0165142%
City Merced Merced 0.061%0.0500762%
County Modoc County Modoc 0.065%0.080%0.0678250%
County Mono County Mono 0.023%0.029%0.0242606%
County Monterey County Monterey 0.908%1.111%0.9437083%
City Greenfield Monterey 0.006%0.0050552%
City King City Monterey 0.005%0.0037355%
City Marina Monterey 0.017%0.0144098%
City Monterey Monterey 0.041%0.0336540%
City Pacific Grove Monterey 0.009%0.0074842%
City Salinas Monterey 0.094%0.0776576%
City Seaside Monterey 0.023%0.0191772%
City Soledad Monterey 0.007%0.0060870%
County Napa County Napa 0.288%0.352%0.2994325%
City American Canyon Napa 0.017%0.0136869%
City Napa Napa 0.078%0.0642783%
County Nevada County Nevada 0.441%0.539%0.4579827%
City Grass Valley Nevada 0.024%0.0197805%
City Truckee Nevada 0.003%0.0023843%
County Orange County Orange 4.364%5.339%4.5363576%
City Aliso Viejo Orange 0.014%0.0113841%
City Anaheim Orange 0.554%0.678%0.5759282%
City Brea Orange 0.086%0.0708897%
City Buena Park Orange 0.087%0.0714352%
City Costa Mesa Orange 0.124%0.152%0.1288366%
City Cypress Orange 0.033%0.0271937%
City Dana Point Orange 0.001%0.0005560%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055%0.0455980%
City Fullerton Orange 0.137%0.168%0.1425744%
City Garden Grove Orange 0.213%0.1752482%
City Huntington Beach Orange 0.247%0.302%0.2568420%
City Irvine Orange 0.139%0.170%0.1442350%
City Laguna Beach Orange 0.047%0.058%0.0493043%
City Laguna Hills Orange 0.014%0.0115457%
City Laguna Niguel Orange 0.001%0.0007071%
City Laguna Woods Orange 0.001%0.0006546%
City La Habra Orange 0.060%0.073%0.0621049%
City Lake Forest Orange 0.012%0.0101249%
City La Palma Orange 0.012%0.0095439%
City Los Alamitos Orange 0.008%0.0069190%
City Mission Viejo Orange 0.014%0.0117560%
City Newport Beach Orange 0.179%0.1470134%
City Orange Orange 0.150%0.1231320%
City Placentia Orange 0.029%0.035%0.0298912%
City Rancho Santa Margarita Orange 0.001%0.0006296%
City San Clemente Orange 0.008%0.010%0.0086083%
City San Juan Capistrano Orange 0.008%0.0065510%
City Santa Ana Orange 0.502%0.614%0.5213866%
City Seal Beach Orange 0.020%0.0165891%
City Stanton Orange 0.035%0.0291955%
City Tustin Orange 0.073%0.0600341%
City Westminster Orange 0.104%0.127%0.1082721%
City Yorba Linda Orange 0.044%0.0362223%
County Placer County Placer 1.045%1.278%1.0861002%
City Auburn Placer 0.017%0.0141114%
City Lincoln Placer 0.031%0.0255599%
City Rocklin Placer 0.076%0.0625485%
Docusign Envelope ID: 52C724AD-7EEC-4EB5-BB96-4E2FAD27B3DD
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APPENDIX 1
9 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196%0.1616559%
County Plumas County Plumas 0.205%0.251%0.2128729%
County Riverside County Riverside 4.534%5.547%4.7128296%
City Banning Riverside 0.017%0.0143848%
City Beaumont Riverside 0.021%0.0171135%
City Blythe Riverside 0.012%0.0096714%
City Canyon Lake Riverside 0.000%0.0001761%
City Cathedral City Riverside 0.067%0.0553614%
City Coachella Riverside 0.021%0.0173054%
City Corona Riverside 0.147%0.1207083%
City Desert Hot Springs Riverside 0.024%0.0200433%
City Eastvale Riverside 0.000%0.0002747%
City Hemet Riverside 0.051%0.0421792%
City Indio Riverside 0.056%0.0457794%
City Jurupa Valley Riverside 0.001%0.0008991 %
City Lake Elsinore Riverside 0.021%0.0172949%
City La Quinta Riverside 0.063%0.0516732%
City Menifee Riverside 0.032%0.0260909%
City Moreno Valley Riverside 0.137%0.1130348%
City Murrieta Riverside 0.048%0.059%0.0497423%
City Norco Riverside 0.016%0.0134542%
City Palm Desert Riverside 0.083%0.0682465%
City Palm Springs Riverside 0.076%0.0629862%
City Perris Riverside 0.009%0.0076774%
City Rancho Mirage Riverside 0.052%0.0431098%
City Riverside Riverside 0.268%0.2206279%
City San Jacinto Riverside 0.010%0.0085936%
City Temecula Riverside 0.022%0.0180086%
City Wildomar Riverside 0.008%0.0062500%
County Sacramento County Sacramento 3.797%4.645%3.9465887%
Docusign Envelope ID: 52C724AD-7EEC-4EB5-BB96-4E2FAD27B3DD
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APPENDIX 1
10 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057%0.0465312%
City Elk Grove Sacramento 0.130%0.1066994%
City Folsom Sacramento 0.108%0.0890850%
City Galt Sacramento 0.017%0.0143704%
City Rancho Cordova Sacramento 0.008%0.0067679%
City Sacramento Sacramento 0.721%0.882%0.7496530%
County San Benito County San Benito 0.106%0.130%0.1101417%
City Hollister San Benito 0.027%0.0225355%
County San Bernardino County San Bernardino 3.259%3.987%3.3878124%
City Adelanto San Bernardino 0.008%0.0066640%
City Apple Valley San Bernardino 0.025%0.0207360%
City Barstow San Bernardino 0.015%0.0122056%
City Chino San Bernardino 0.064%0.0525893%
City Chino Hills San Bernardino 0.001%0.0006388%
City Colton San Bernardino 0.031%0.0253443%
City Fontana San Bernardino 0.112%0.0920543%
City Grand Terrace San Bernardino 0.006%0.0051051%
City Hesperia San Bernardino 0.035%0.0291522%
City Highland San Bernardino 0.004%0.0029061%
City Loma Linda San Bernardino 0.009%0.0071188%
City Montclair San Bernardino 0.039%0.0322108%
City Ontario San Bernardino 0.179%0.1472934%
City Rancho Cucamonga San Bernardino 0.084%0.0689431 %
City Redlands San Bernardino 0.057%0.0469150%
City Rialto San Bernardino 0.073%0.0603206%
City San Bernardino San Bernardino 0.178%0.1461880%
City Twentynine Palms San Bernardino 0.002%0.0012605%
City Upland San Bernardino 0.052%0.0424460%
City Victorville San Bernardino 0.033%0.0269400%
City Yucaipa San Bernardino 0.016%0.0128772%
Docusign Envelope ID: 52C724AD-7EEC-4EB5-BB96-4E2FAD27B3DD
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003%0.0021228%
County San Diego County San Diego 5.706%6.980%5.9309748%
City Carlsbad San Diego 0.128%0.1050485%
City Chula Vista San Diego 0.189%0.231%0.1961456%
City Coronado San Diego 0.044%0.0359095%
City El Cajon San Diego 0.113%0.0933582%
City Encinitas San Diego 0.061%0.074%0.0630289%
City Escondido San Diego 0.145%0.1192204%
City Imperial Beach San Diego 0.014%0.0118283%
City La Mesa San Diego 0.055%0.068%0.0575593%
City Lemon Grove San Diego 0.022%0.0183911%
City National City San Diego 0.080%0.0656808%
City Oceanside San Diego 0.213%0.1753428%
City Poway San Diego 0.062%0.0511040%
City San Diego San Diego 1.975%2.416%2.0531169%
City San Marcos San Diego 0.089%0.0733897%
City Santee San Diego 0.033%0.0268401%
City Solana Beach San Diego 0.017%0.0138564%
City Vista San Diego 0.052%0.0425144%
Consolidated San Francisco San Francisco 3.026%3.702%3.1457169%
County San Joaquin County San Joaquin 1.680%2.055%1.7460399%
City Lathrop San Joaquin 0.009%0.0075394%
City Lodi San Joaquin 0.053%0.0439484%
City Manteca San Joaquin 0.054%0.0443454%
City Ripon San Joaquin 0.013%0.0104219%
City Stockton San Joaquin 0.313%0.383%0.3256176%
City Tracy San Joaquin 0.084%0.0692047%
County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126%
City Arroyo Grande San Luis Obispo 0.024%0.0199053%
City Atascadero San Luis Obispo 0.029%0.0240680%
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APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456%
City Grover Beach San Luis Obispo 0.017%0.0137881%
City Morro Bay San Luis Obispo 0.020%0.0160922%
City San Luis Obispo San Luis Obispo 0.077%0.0637841 %
County San Mateo County San Mateo 1.074%1.313%1.1159599%
City Belmont San Mateo 0.021%0.0169860%
City Burlingame San Mateo 0.019%0.0152537%
City Daly City San Mateo 0.044%0.0363880%
City East Palo Alto San Mateo 0.013%0.0103982%
City Foster City San Mateo 0.020%0.0166101%
City Half Moon Bay San Mateo 0.004%0.0031638%
City Hillsborough San Mateo 0.013%0.0110029%
City Menlo Park San Mateo 0.015%0.0126209%
City Millbrae San Mateo 0.013%0.0105836%
City Pacifica San Mateo 0.016%0.0130625%
City Redwood City San Mateo 0.056%0.0463511%
City San Bruno San Mateo 0.021%0.0172161%
City San Carlos San Mateo 0.013%0.0108885%
City San Mateo San Mateo 0.052%0.0425841%
City South San Francisco San Mateo 0.043%0.0353943%
County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968%
City Carpinteria Santa Barbara 0.001%0.0008938%
City Goleta Santa Barbara 0.004%0.0028969%
City Lompoc Santa Barbara 0.047%0.0389379%
City Santa Barbara Santa Barbara 0.122%0.1004559%
City Santa Maria Santa Barbara 0.058%0.0479179%
County Santa Clara County Santa Clara 2.404%2.941%2.4987553%
City Campbell Santa Clara 0.014%0.0112566%
City Cupertino Santa Clara 0.008%0.0066824%
City Gilroy Santa Clara 0.025%0.0202891%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013%0.0103338%
City Los Gatos Santa Clara 0.013%0.0103220%
City Milpitas Santa Clara 0.036%0.0298120%
City Morgan Hill Santa Clara 0.015%0.0124619%
City Mountain View Santa Clara 0.041%0.0334608%
City Palo Alto Santa Clara 0.039%0.0323080%
City San Jose Santa Clara 0.294%0.360%0.3054960%
City Santa Clara Santa Clara 0.067%0.0549723%
City Saratoga Santa Clara 0.004%0.0034161%
City Sunnyvale Santa Clara 0.053%0.0434069%
County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396%
City Capitola Santa Cruz 0.020%0.0168191%
City Santa Cruz Santa Cruz 0.143%0.1180348%
City Scotts Valley Santa Cruz 0.015%0.0126525%
City Watsonville Santa Cruz 0.063%0.0520136%
County Shasta County Shasta 1.095%1.339%1.1380191%
City Anderson Shasta 0.024%0.0198896%
City Redding Shasta 0.284%0.2334841 %
City Shasta Lake Shasta 0.004%0.0031993%
County Siskiyou County Siskiyou 0.228%0.279%0.2373393%
County Solano County Solano 0.760%0.6260795%
City Benicia Solano 0.031%0.0253903%
City Dixon Solano 0.016%0.0130849%
City Fairfield Solano 0.109%0.0897317%
City Suisun City Solano 0.021%0.0176183%
City Vacaville Solano 0.119%0.0976497%
City Vallejo Solano 0.167%0.1373644%
County Sonoma County Sonoma 1.218%1.490%1.2661290%
City Healdsburg Sonoma 0.032%0.0266929%
City Petaluma Sonoma 0.081%0.0667507%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041%0.0340759%
City Santa Rosa Sonoma 0.184%0.1519070%
City Sonoma Sonoma 0.022%0.0183438%
City Windsor Sonoma 0.016%0.0129298%
County Stanislaus County Stanislaus 1.722%1.4182273%
City Ceres Stanislaus 0.041%0.0340260%
City Modesto Stanislaus 0.217%0.1788759%
City Newman Stanislaus 0.006%0.0046964%
City Oakdale Stanislaus 0.018%0.0145531%
City Patterson Stanislaus 0.015%0.0126590%
City Riverbank Stanislaus 0.010%0.0085699%
City Turlock Stanislaus 0.065%0.0531966%
County Sutter County Sutter 0.306%0.374%0.3179548%
City Yuba City Sutter 0.074%0.0606242%
County Tehama County Tehama 0.213%0.261%0.2216654%
City Red Bluff Tehama 0.014%0.0117771%
County Trinity County Trinity 0.082%0.101%0.0855476%
County Tulare County Tulare 0.809%0.990%0.8410949%
City Dinuba Tulare 0.014%0.0116929%
City Exeter Tulare 0.004%0.0032479%
City Farmersville Tulare 0.003%0.0027879%
City Lindsay Tulare 0.007%0.0057111%
City Porterville Tulare 0.021%0.0171845%
City Tulare Tulare 0.037%0.0302273%
City Visalia Tulare 0.066%0.0545872%
County Tuolumne County Tuolumne 0.486%0.594%0.5047621%
County Ventura County Ventura 2.192%2.681%2.2781201%
City Camarillo Ventura 0.002%0.0012815%
City Fillmore Ventura 0.002%0.0020294%
City Moorpark Ventura 0.008%0.0067337%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156%0.190%0.1617338%
City Port Hueneme Ventura 0.021%0.0174145%
City San Buenaventura (Ventura)Ventura 0.085%0.0702181%
City Santa Paula Ventura 0.014%0.0119072%
City Simi Valley Ventura 0.065%0.0533043%
City Thousand Oaks Ventura 0.022%0.0179902%
County Yolo County Yolo 0.357%0.437%0.3713319%
City Davis Yolo 0.055%0.0451747%
City West Sacramento Yolo 0.066%0.0544321%
City Woodland Yolo 0.058%0.0477904%
County Yuba County Yuba 0.214%0.262%0.2225679%
City Marysville Yuba 0.014%0.0112079%
Docusign Envelope ID: 52C724AD-7EEC-4EB5-BB96-4E2FAD27B3DD
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1
APPENDIX 2
CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio
issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate
Litigation, MDL 2804, addressing contingent attorney fee contracts between political
subdivisions eligible to participate in the Purdue/Sackler settlement and their counsel.
In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel
[COUNSEL], and the California Attorney General, on behalf of the State of California, are
entering into this California-Subdivision Backstop Agreement (Backstop Agreement).
[SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back-
Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’
Fees, Expenses and Costs) of the Governmental Entity & Shareholder Settlement Agreement
(GESA).
Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the
Governing Documents and California Purdue/Sackler State-Subdivision Agreement, as well as
any other limitations imposed by law, use funds that it receives from the CA Subdivision Fund of
the Purdue/Sackler settlement to pay a contingent fee to [COUNSEL]. Any such payment from
[SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will
not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out
of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such
payments, together with any contingency-fees that [COUNSEL] may receive from the Local
Government Costs and Expenses Fund, will not exceed a total contingency fee of
[PERCENTAGE NOT TO EXCEED 15%] of the [SUBDIVISION’S] total gross recovery from
the Purdue/Sackler settlement. [SUBDIVISION] further certifies that any payments made under
this Backstop Agreement will be made in accordance with the 95% Opioid Abatement use
requirements under Section 5.02 A of the GESA and Section 4.01(f)(i) of the Master Settlement
Agreement.
[COUNSEL] certify that they first sought fees and costs from the Local Government Costs and
Expenses Fund created under the Governing Documents before seeking or accepting payment
under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not
accept payment under this backstop agreement of any litigation fees or costs that have been
reimbursed through prior settlements or judgments.
The Attorney General is executing this agreement solely because the definition of “State Back-
Stop Agreement” in Exhibit R of the Governmental Entity & Shareholder Settlement Agreement
requires such agreements to be between “a Settling State” and private counsel for a participating
subdivision. Neither the California Attorney General nor the State of California have any
obligations under this Backstop Agreement, and this Backstop Agreement does not require the
payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
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[DATE][SUBDIVISION SIGNATURE BLOCK]
[DATE][COUNSEL SIGNATURE BLOCK]
[DATE][ATTORNEY GENERAL SIGNATURE BLOCK]
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