Council opts into three proposed opioid settlements; city attorney says final payouts, products depend on court process

The City of Lansing Committee of the Whole on Sept. 8 unanimously approved resolutions to participate in three proposed opioid settlements covering claims against Sandoz, the Purdue/Sackler defendants and generic manufacturers.

City Attorney Venker told the committee the city is part of a group of government plaintiffs in mass-tort litigation and must pass resolutions opting into settlement so the court and a special master can determine how many governments will proceed. “It’s not a class action exactly. It’s mass tort litigation,” Venker said. He added that the proposed settlements are “mostly money” and that, if the city participates, a second set of resolutions would return to amend the budget and accept funds once the settlements are finalized.

Council Member Pali Vanoglu asked about language in the generic-manufacturers resolution that refers to states receiving free pharmaceutical products or cash in lieu of products. Venker explained the “abatement portion is essentially paying us back for monies that we have expended,” and that some settlement terms also contemplate deliveries of pharmaceuticals or cash in lieu; he said his understanding is that most jurisdictions are moving toward cash in lieu of product, but that the final form is not yet certain.

Vice President Carter moved the resolutions that would opt the city into the proposed Sandoz, Purdue/Sackler and generic-manufacturer settlements. The motions passed unanimously. Venker cautioned that estimated amounts appear in some draft resolutions but are provisional and that final allocation and receipt of funds depend on the court-supervised settlement process and later council budget amendments.