Council elects to participate in Purdue Pharma bankruptcy settlement for opioid-abatement funds

The Lynn City Council on Sept. 9 voted to elect participation in the Purdue Pharma bankruptcy settlement, a national bankruptcy plan that allocates funds to states and municipalities to support opioid-abatement programs. The council’s action authorizes the mayor to execute documents necessary to participate.

City legal counsel explained the settlement was negotiated as part of a bankruptcy process and that participating municipalities must elect to join by the court deadline to receive their share. Legal advisers told the council that the city’s failure to elect could jeopardize eligibility for distribution. The settlement is part of a larger set of opioid-related recoveries; counsel said nationwide settlements with Purdue and with other manufacturers total in the multibillion-dollar range and municipal distributions are typically paid over multiple years.

Councilors asked how the funds will be used and whether they will flow to the general fund. Counsel and staff said the funds are earmarked for opioid-abatement uses and will be overseen through the city’s opioid abatement committee; they are not available for general-city operating expenses. The city has already received opioid-related settlements in the past and the mayor’s office has a working group tasked with spending the funds lawfully.

The council moved and seconded the authorization; a roll-call vote approved the election to participate. City staff said the mayor’s office will continue to report on abatement spending and that the opioid-abatement committee — which includes a council representative — will provide periodic updates.