Council authorizes city manager to submit ballot on Purdue Pharma reorganization plan

The Red Oak City Council unanimously adopted Resolution No. 25-068R authorizing the city manager to cast the city’s ballot to accept or reject the thirteenth amended joint chapter 11 plan of reorganization for Purdue Pharma LP and affiliated debtors.

Staff explanation: city legal counsel explained the settlement stems from national opioid litigation and that many municipalities are class members eligible for distributive payments. The anticipated payment to Red Oak was described as modest — staff estimated roughly $40,000 — and the council was told the funds must be used for drug-education or drug-related programs as required by the settlement terms.

Why the ballot matters: counsel said the bankruptcy process means the plan must be accepted by creditors and approved by the court; if the thirteenth plan fails, there could be further plans or a liquidation that might reduce recoveries. Council was advised the city should vote to accept the plan to protect its share of the settlement under the bankruptcy process.

Council action: councilmember Miller moved to adopt Resolution 25-068R authorizing the city manager to execute and submit the e-ballot; the motion passed 5-0 (Franklin, Flannery, Miller, Lightfoot and Smith voted yes). Staff said the signed ballot is due by the end of the month and that the mayor and city staff would ensure execution as required.

Use of funds: staff reminded council that any settlement funds will be restricted by the settlement’s requirements to drug-education or related programs administered through the police department and city-sponsored initiatives.