Council votes to opt into amended Purdue Pharma bankruptcy settlement; minority‑participation amendment added

The Jackson City Council on Sept. 9 approved an order authorizing the city to opt into an amended Purdue Pharma bankruptcy settlement that city attorneys said creates a larger pool of settlement funds by combining Purdue Pharma money with additional shareholder contributions. The council also approved an amendment directing that any additional outside counsel work related to opioid claims should include minority participation.

Interim City Attorney Drew Martin told council members the city is already a party to earlier opioid-related bankruptcy proceedings and that the amended plan offers access to a larger pool of funds in exchange for a release of certain shareholder claims. He said the city must provide specified information to the plan administrator by Sept. 10 to be considered for allocations under the amended plan. On initial review, Martin said he did not see a downside to opting in and that participation could be handled without hiring outside bankruptcy counsel, which could save the city litigation expenses.

Council members asked whether opting in would affect other opioid settlements and whether recovered funds would revert to the general fund; attorneys said the matters are separate and that settlement proceeds typically go to the general fund unless otherwise directed. Councilman Parkinson requested that the city have time to confirm details; Martin said staff would continue to review and that council authorization would allow staff to proceed if further review confirms the initial recommendation.

The council also debated and adopted an amendment asking that any additional outside counsel work related to opioid claims include minority-firm participation; the council first approved the amendment on a 5–1 vote and then approved the item as amended on a 6–0 recorded vote.

Nut graf: By opting into the amended Purdue/related shareholder settlement, the city positions itself to receive a larger allocation from the bankruptcy trust but may be required to release certain claims; city legal staff recommended opt-in after limited review and noted a submission deadline to the plan administrator.

Details and context: City officials explained the mechanics: the amended plan combines Purdue-sourced funds with shareholder contributions, enlarging the available pool. The city’s existing opioid-recovery work is handled by outside counsel in some matters (Sheila Bossier and Associates was cited earlier in the meeting); for this opt-in matter, attorneys indicated no additional outside counsel was necessary. Council members sought assurances about minority participation and the relationship between this opt-in and existing settlements.

Ending: Council approval authorizes the city to opt in while staff finishes due diligence; if staff later discovers issues, council was told the administration would advise against participation. Council members also secured language to encourage minority participation if outside counsel is needed in any subsequent work.