Subject:
Title
In re: National Prescription Opioid Litigation - Approval to Vote in Favor of the Purdue Bankruptcy Restructuring Plan; Request Approval for Staff to Pursue Interlocal Agreements with Cities pursuant to the State of Florida's Memorandum of Understanding
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Fiscal Impact:
None
Dept/Office:
County Attorney's Office on behalf of outside Counsel for the Opioid Litigation
Requested Action:
Recommendation
Authorize outside Counsel to vote in favor of the Purdue Bankruptcy restructuring Plan on behalf of Brevard County, and Authorize Staff to Pursue Interlocal Agreements with Cities pursuant to the State of Florida's Memorandum of Understanding's Qualified County standard.
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Summary Explanation and Background:
Brevard County has filed a lawsuit as part of In re: National Prescription Opiate Litigation, Case No. 17-md-2804, which is the multi-district litigation against the opioid manufacturers, distributors, and retailers in the District Court for the Northern District of Ohio. In 2019, one of the Defendants, Purdue Pharma, L.P. and its affiliated entities (collectively Purdue) filed a Chapter 11 Bankruptcy. On July 21, 2020, the Board authorized Outside Counsel to file a proof of claim in the Bankruptcy. Recently, Purdue has submitted its plan to restructure the Company (the Plan).
In accordance with the Nationwide Settlement Framework, Purdue has submitted a Restructuring Plan (Purdue's Plan). The County, as an unsecured creditor, can submit a ballot by the deadline of July 14, 2021 to either accept, reject, or abstain from voting on the restructuring plan. The restructuring plan provides for approximately $6 billion in assets from Purdue Pharma, L.P., its shareholders, and the Sackler Family. Approximately $5 Billion of the recovered assets will be allocated among state, local and tribal governments. The funds received by these entities will be restricted to uses that abate the opioid problem in the community. The State of Florida, inclu...
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